Cablegate: Japanese Morning Press Highlights 11/13/09

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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 11/13/09

INDEX:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

Japan-U.S. summit:
4) Japan and U.S. leaders to pledge cooperation on global warming
and arms reduction; Futenma issue to be placed on back burner
(Tokyo Shimbun)
5) Japan and U.S. agree on cooperation in five areas including the
environment and energy (Yomiuri)
6) Japan-U.S. joint statement to include target of 80 PERCENT
reduction in greenhouse gas emissions by 2050 (Nikkei)
7) At summit Japan and U.S. to steer clear of focus on Futenma
(Mainichi)
8) Japan eager to choreograph successful summit (Yomiuri)

Foreign relations:
9) Ainu Association Chairman invited to Obama speech (Mainichi)
10) Hatoyama hopes for U.S. participation in East Asia Community
(Asahi)

Politics:
11) Defense Parliamentary Secretary objects to budget screening
(Sankei)
12) Reserve funds of 700 billion yen to be returned; budget
screening team eyes using funds (Nikkei)

Economy:
13) Japan, U.S., and Europe to strengthen cooperation in patent
inspections (Nikkei)
14) Two U.S. carriers battling for JAL (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Government Revitalization Unit calls public corporations to return
600 billion yen in funds to state coffers on day two; money can
become new "buried treasure"

Mainichi:
Government panel eyes clear criteria on screening work overlapping
with local regions; corporations hiring retired government officials
also subject to screening

Yomiuri:
Government panel urges return of 627.1 billion yen in "buried
treasure" in special accounts

Nikkei:
China to stockpile coal; imports of iron ore, copper also on sharp
rise; competition for resources intensifying

Sankei:
Emperor celebrates 20 years on the throne; expresses hope for the
people to nurture ties and overcome difficulties

Tokyo Shimbun:
Tokyo District Public Prosecutors Office special investigation squad

TOKYO 00002622 002 OF 009

paying attention to unexplained 500 million yen reported by Prime
Minister's political fund management organization over five years

Akahata:
Health and Labor Ministry considering eliminating evacuation, fire
resistance criteria for daycare centers; Safety for children and
state responsibility might be abandoned

2) EDITORIALS

Asahi:
(1) Afghan aid: Japan should do what is possible boldly
(2) Hisaya Morishige, a renowned actor of postwar period

Mainichi:
(1) Inoculation system effective against the new strain of influenza
necessary
(2) A visit to North Korea by high-ranking U.S. official: Stand
strong against intimidation

Yomiuri:
(1) Budget screening work: Aim is understandable, but method is
problematic
(2) Case of the murder of British woman: Suspect arrested owing to
information from citizens

Nikkei:
(1) Distribution of payments to medical institutions must be
reviewed rather than increasing payments
(2) Board of Audit must be utilized more effectively

Sankei:
(1) U.S. President's visit to Japan: "Situation of uncertainly" must
be corrected
(2) Prime Minister's political funds: Does DPJ not investigate?

Tokyo Shimbun:
(1) Emperor marks 20th anniversary of reign: Emperor of Heisei
always on the side of the people
(2) Wasteful spending of tax money: Board of Audit must work closely
with Government Revitalization Unit

Akahata:
(1) Take first step toward abolishing sympathy budget

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, November 12

NIKKEI (Page 2) (Full)
November 13, 2009

10:09 Met Internal Affairs and Communications Minister Haraguchi and
Lower House member Seiji Osaka at the Prime Minister's Official
Residence (Kantei).
11:04 Met Ambassador to U.S. Fujisaki, Administrative Vice Foreign
Minister Yabunaka, and deputy foreign ministers for foreign affairs
Sasae and Otabe, joined by Senior Vice Foreign Minister Takemasa.
13:58 Went to National Theatre of Japan together with National
Strategy Minister Kan and Chief Cabinet Secretary Hirano to meet the
Emperor and Empress. Attended ceremony commemorating the 20th
anniversary of the Emperor's accession.

TOKYO 00002622 003 OF 009

15:24 Along with Kan and Hirano saw off the Emperor and Empress.
15:38 Met Foreign Minister Okada and Otabe at Kantei. Okada stayed
behind.
16:12 Met Cabinet Intelligence Director Mitani.
17:04 Gave interview to Singaporean media companies.
18:15 Attended event commemorating the 20th anniversary of the
Emperor's accession held plaza in front of the Imperial Palace.
19:19 Arrived at his official residential quarters.

4) Japanese, U.S. leaders to affirm cooperation over global warming,
nuclear arms reduction, but to sidestep Futenma issue

TOKYO SHIMBUN (Page 1) (Excerpts)
November 13, 2009

U.S. President Barack Obama will visit Japan today for the first
time since assuming office in January and hold a meeting with Prime
Minister Yukio Hatoyama at the Prime Minister's official Residence
(Kantei). The two leaders are expected to reaffirm that they will
cooperate in dealing with global warming and promoting nuclear arms
reduction while putting off a conclusion on the issue of relocating
the U.S. Marine Corps' Futenma Air Station in Ginowan City, Okinawa
Prefecture, the thorniest issue between Japan and the U.S.

On the Futenma issue, Washington has urged Tokyo to swiftly
implement the current plan to construct an alternative facility in a
coastal area of Camp Schwab, but the Hatoyama administration remains
indecisive.

In the summit meeting today, the Japanese and U.S. leaders are
expected to just confirm the need to make efforts for an early
resolution of the Futenma issue in order to avoid throwing into
relief the gap between the two countries. Speaking before reporters
at the Kantei last evening, Hatoyama said: "It is necessary to
convey to the President in some form or other the government's
willingness to bring about a settlement at an early date."

Regarding nuclear arms reduction, coordination is now underway for
the two leaders to issue a statement that specifies their
determination to realize a nuclear-free world, proposed by the
President. The two countries are also studying the possibility of
issuing a statement in which they will vow to strengthen cooperation
in containing global warming.

With respect to aid to Afghanistan, Hatoyama will inform the
President of the government's new package of assistance measures
worth 5 billion dollars, or 450 billion yen, over five years
starting this year. He will also ask for the President's
understanding in regard to the policy of halting the Maritime
Self-Defense Force's refueling mission in the Indian Ocean in
January.

5) Japan, U.S. to agree on cooperation for five projects in
environment and energy areas

YOMIURI (Page 2) (Full)
November 13, 2009

Prime Minister Yukio Hatoyama and U.S. President Barack Obama will
affirm during their meeting on the 13th that the two countries will
cooperate in the environment and energy areas. According to an
outline of the cooperation plan released yesterday, the two

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countries will promote joint research on five projects, including
the smart grid strategy, to adjust electricity supply and demand
among regions by making use of information technology (IT) and the
development of Carbon Dioxide Capture and Storage (CCS) technology
to bury in the ground carbon dioxide emitted from thermal and other
power plants.

As early as 2010 Japan and the U.S. will set up a task force to
implement plans for cooperation on the smart grid and hammer out an
action plan. The two countries aim to advance global-warming
countermeasures by deepening their cooperation in cutting-edge
fields and to lead the world in new growth areas.

Japan and the U.S. will also jointly conduct research on
atomic-power generation, fuel cells, hydrogen technology, renewable
energy, and energy conservation. They announced a plan this spring
to reach a package agreement to jointly expedite these projects in
the environment and energy areas and launch joint research. Their
leaders will reaffirm this plan in their summit meeting.

6) Japan, U.S. to issue joint statement on 80 PERCENT greenhouse
gas emission cut by 2050

NIKKEI (Page 1) (Full)
November 13, 2009

Prime Minister Yukio Hatoyama will hold today a summit meeting with
U.S. President Barack Obama at the Prime Minister's Official
Residence (Kantei). The two leaders will issue a joint statement
aiming to cut greenhouse gas emissions by 80 PERCENT by 2050, as
well as to bring about a world free of nuclear weapons. They intend
not to take up the relocation of the U.S. Marine Corps Air Station
Futenma in Okinawa Prefecture, the key pending issue, as a major
agenda item in their summit. Instead, the Futenma issue will be
discussed at a working group meeting likely to be held early next
week.

In connection with his East Asian Community initiative, the Prime
Minister is expected to tell the President that the U.S.'s
involvement in the community is indispensable and that he welcomes
it. The Prime Minister's aim is to ease the U.S. side's anxiety
about his initiative.

With regard to aid measures for Afghanistan, on which the Obama
administration places priority, the Prime Minister will convey to
the President that Japan will extend up to 5 billion dollars in
fresh civilian aid to Afghanistan over five years from 2009. The
Hatoyama administration intends to portray its civilian aid to
Afghanistan as a new set of measures to support efforts by the
United States in place of the Maritime Self-Defense Force's
refueling mission in the Indian Ocean, which will expire next
January.

7) Cabinet-level Futenma group to be established to avoid discussing
contentious matter at summit

MAINICHI (Page 2) (Full)
November 13, 2009

Shinichiro Nishida, Tomoko Onuki

Since the governments of Japan and the United States have agreed to

TOKYO 00002622 005 OF 009

establish a cabinet-level working group to reach a swift conclusion
to the question of relocating the U.S. Marine Corps' Futenma Air
Station (in Ginowan, Okinawa Prefecture), the Futenma issue is
unlikely to take center stage at the Japan-U.S. summit today.
However, there is a subtle difference between the motives of the two
governments over the significance of the establishment of the
working group. The Nago mayor, who has accepted the existing plan to
relocate Futenma to the coastal area of Camp Schwab (in Nago,
Okinawa Prefecture), announced on Nov. 12 that he will welcome an
alternative plan if one is presented, and called for a swift
decision. There are likely to be many obstacles along the path
toward a settlement of the issue.

"I commend the Nago mayor on the difficult decision he had to make.
We are examining several options while respecting such thinking and
the feelings of the people of Okinawa."

Prime Minister Yukio Hatoyama reiterated his previous stance of
gauging the Okinawa public's consensus to the press corps at the
Prime Minister's Official Residence (Kantei) yesterday evening,
while indicating that he will take Nago Mayor Yoshikazu
Shimabukuro's "difficult decision" into consideration.

Hatoyama's insistence on postponing a conclusion comes from his
resolve to end Japan's diplomacy of blindly following the United
States and not to accept U.S. requests easily. It also comes from
his intention to avoid stumbling in the initial process of building
(a new) Japan-U.S. alliance, which he has described as the
cornerstone of Japan's diplomacy. The U.S. side, too, also decided
not to allow any specific issues to be focused on in Japan, the
first leg of (President Obama's) Asia tour, to avoid giving the
impression that his visit has failed. This is what led to
Washington's decision not to discuss contentious matters during the
Japan-U.S. summit.

The Japanese side attaches importance to the fact that the policy
direction to postpone a conclusion was confirmed beforehand, with
one official saying, "The U.S. side has officially acknowledged the
need for examination work." The U.S. side, on the other hand, has
not changed its stance of calling for the implementation of the
existing plan, regarding the working group as a framework for the
swift completion of the examination.

Foreign Minister Katsuya Okada and Secretary of State Hillary
Clinton agreed in their talks in Singapore on Nov. 11 to reach a
conclusion swiftly through working-group talks. "I received a report
from Foreign Minister Okada," Hatoyama told the press corps
yesterday. "Rather than promising to resolve the matter at an early
date, (the Japanese government) conveyed (to the U.S. government)
its desire to settle the matter."

8) "Scanner" column: Government scrambles to stage "good Japan-U.S.
relations" for President Obama's visit

YOMIURI (Page 3) (Full)
November 13, 2009

Aya Igarashi, Hideki Kawasaki

U.S. President Barack Obama will make his first visit to Japan on
Nov. 13 and hold a summit meeting with Prime Minister Yukio
Hatoyama. The Japanese government is making vigorous efforts to

TOKYO 00002622 006 OF 009

stage the "success" of this visit amid strains in the Japan-U.S.
relationship on such issues as the relocation of the U.S. forces'
Futenma Air Station. However, it is uncertain whether the Prime
Minister will behave according to prior arrangements due to his own
attitude toward the United States and his political style.

Developing an agenda

When he emerged from his official residential quarters on the
morning of Nov. 12, Hatoyama told reporters that "preparations are
underway" for the Japan-U.S. summit.

Hatoyama, who advocates "political leadership," tends not to rely on
the question and answer scenarios prepared by the bureaucrats and
likes to speak "in his own words" at meetings. However, tension is
high in the bilateral relationship over Futenma and other issues.
The Ministries of Foreign Affairs and Defense are edgy because they
"cannot afford to make mistakes at this summit meeting."

Hatoyama held preparatory study sessions for the summit with Senior
Vice Foreign Minister Koichi Takemasa and Vice Foreign Minister
Mitoji Yabunaka on Nov. 11 and 12. According to senior Ministry of
Foreign Affairs (MOFA) officials, the Prime Minister listened
intently to the briefing and made occasional suggestions about
wording and expressions. In its attempt to make the summit a success
at all cost, the government has been saying "the Japan-U.S.
relationship is not limited to the Futenma issue" (according to a
government source) as a precautionary measure and has been
scrambling to develop an agenda. Its strategy is to demonstrate the
achievements of the summit by drafting joint communiqus on nuclear
disarmament, global warming prevention, and other areas.

In particular, a package of Afghan aid measures worth a total of 5
billion dollars (approximately 450 billion yen) over five years
starting this year to replace the Maritime Self-Defense Force's
refueling mission in the Indian Ocean has been prepared as the
biggest "present" for the President's trip to Japan. While concrete
aid measures are still mostly undetermined, a senior MOFA official
says that this is an amount that was "compiled frantically in time
for the President's visit." U.S. Secretary of State Hillary Clinton
indicated repeatedly at her meeting with Foreign Minister Katsuya
Okada in Singapore on Nov. 11 that Japan's efforts are "very much
appreciated."

Slip of the tongue

However, there is concern in the government that in his enthusiasm
to speak "in his own words," the Prime Minister may make a slip of
the tongue, which may cancel out all the preparations that have been
made.

Hatoyama astonished reporters again at the Prime Minister's Official
Residence (Kantei) on the evening of Nov. 12. Even though it had
just been agreed upon at the Japan-U.S. foreign ministerial meeting
on Nov. 11 to "reach a conclusion as soon as possible" on the
Futenma issue, Hatoyama said: "(The foreign minister) has not
promised to resolve the issue quickly but merely conveyed his desire
to work for an early solution." This statement could be taken to
mean that the two foreign ministers did not reach an agreement.

The Prime Minister's aides say that "he is 'studying independently'
very hard even at his official residential quarters." However, a

TOKYO 00002622 007 OF 009

senior MOFA official seemed anxious when he said, "It's up to the
Prime Minister to decide whether he will read from the notes we have
prepared or say something different."

Leaving the President behind?

With the President's trip to Japan being delayed by one day, he will
be in Japan until Nov. 14. This has given rise to unexpected
complications.

Hatoyama will fly to Singapore for the APEC Summit after the
bilateral summit and the reception for the President on the evening
of Nov. 13. Therefore, he will be leaving Japan ahead of the
President, who has activities scheduled for Nov. 14.

The concerned officials are particularly nervous about the
President's luncheon with the Emperor at noon on Nov. 14. The Prime
Minister will not be in Japan at that time.

It is feared that the absence of the Prime Minister at the U.S.
President's audience with the Emperor "may be a breach of protocol
and may be unprecedented" (according to MOFA). This is another
example of Hatoyama's unprecedented diplomacy.

9) Ainu Association head invited to U.S. President Obama's speech on
Nov. 14

MAINICHI (Page 26) (Full)
November 13, 2009

Tadashi Kato, head of the Ainu Association of Hokkaido, has been
invited to a speech that will be delivered on Nov. 14 in Tokyo by
U.S. President Barack Obama, who will visit Japan for the first
time. Kato was delighted with the invitation, saying, "I am grateful
to him for shedding light on the Ainu as the original inhabitants of
Japan." The speech will be hosted by the U.S. side and 1,500
Japanese and foreign guests will attend it.

10) Hatoyama wants U.S. to join in East Asian Community initiative

ASAHI (Page 4) (Full)
November 13, 2009

Prime Minister Yukio Hatoyama expressed hope for the United States
to participate in the framework of his East Asian Community
initiative. "The United States' security efforts deserve to be
appreciated," Hatoyama told a Singaporean news organization in an
interview yesterday before leaving Japan for the upcoming
Asia-Pacific Economic Cooperation (APEC) forum. "I want the United
States to join us in the security area," he added.

11) Nagashima raises objection to budget screening

SANKEI (Page 5) (Full)
November 13, 2009

The Defense Ministry held a policy meeting yesterday, during which
Akihisa Nagashima, one of the ministry's two parliamentary vice
ministers, raised an objection to the Government Revitalization
Unit's budget screening process since it includes defense-related
spending. "Their budget screening includes a number of items that
should not be concluded in a short period of time," Nagashima said.

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"They should discuss these items thoroughly from the perspective of
defending the peace and security of Japan over a long period of
time," he added. Nagashima specifically mentioned defense
procurement and Japan's burden of sharing costs for the stationing
of U.S. forces in Japan (omoiyari yosan or literally "sympathy
budget").

12) Government panel calls for return of 700 billion yen in funds or
reserves to state coffers

NIKKEI (Page 1) (Excerpts)
November 13, 2009

The Government Revitalization Unit, chaired by Prime Minister Yukio
Hatoyama, continued work yesterday to screen fiscal 2010 budget
requests with the aim of sorting out projects deemed to be a waste
of taxpayers' money. In the screening process, the panel focused on
24 items and 67 projects. For many of the funds of public
foundations and reserves in special accounts, the panel judged that
their full amounts be returned to state coffers. According to a
simple calculation based on the balance at the end of fiscal 2008 of
the funds and reserves that were judged to be returned, their total
amount is approximately 700 billion yen.

13) Japan, U.S., European countries to cooperate for faster
screening of international patent applications

NIKKEI (Page 7) (Lead para.)
November 13, 2009

The patent offices of Japan, the U.S. and European countries will
strengthen cooperation for the screening of international patent
applications. They will ease the conditions for the application of
the Patent Prosecution Highway (PPH) system starting in January next
year so that applicants can make patent applications in other
countries before obtaining the patent in their own countries. Up
until today, applicants could only use the system after obtaining
patents in their own countries. This will help Japanese companies
operating in Europe and the U.S., including automakers and consumer
electronics makers, significantly reduce the time and cost taken to
obtain patents.

Japan, the U.S. and European countries are expected to reach an
agreement to ease conditions for the use of the PPH at their patent
agency directors general meeting to be held on Nov. 13 in Kyoto.

14) Two American carriers scrambling for stakes in JAL: American Air
Lines, Delta Air Lines in battle with eye on liberalization of
Japan's national flag air carrier

YOMIURI (Page 11) (Excerpts)
November 13, 2009

Hiroshi Ikematsu, New York

American Airlines of the U.S., the world's second largest air
carrier, has revealed its plan to propose investing in Japan
Airlines jointly with TPJ, a leading U.S. investment fund, heating
up competition with Delta Air Lines of the U.S., the largest carrier
in the world, which is also exploring a business tie-up with JAL.
They are approaching JAL because tying up with it is indispensable
for them to secure a commanding lead in competition in the run-up to

TOKYO 00002622 009 OF 009

liberalization of the aviation industry likely to be realized
between Japan and the U.S. However, since JAL is now under state-led
reconstruction, a settlement is not yet in sight.

Tug-of-war

In an interview with the Yomiuri Shimbun, Chief Financial Officer
Thomas Horton of AMR Corporation, the parent company of American Air
Lines, on Nov. 12 underscored that "firmly upholding strategic
relations (with JAL) will produce the greatest value." He revealed
his intention to help JAL remain a member of the oneworld alliance
like American Air Lines, including cooperation in financial terms as
well.

Delta Air Lines' share of the Pacific Route connecting Japan and the
U.S. is 32 percent. That of American Air Lines is 8 percent. JAL's
share is 22 percent. If JAL ties up with Delta Air Lines, American
Air Lines would suffer an overwhelming setback on the Japan-U.S.
route.

In the meantime, Delta Air Lines had already proposed investing
billions of yen in JAL. It has also proposed shouldering the cost of
JAL, if it ties up with it, becoming a member of its aviation
alliance SkyTeam. Delta Air Lines have made those proposals to
counter American Air Line's argument that switching the aviation
alliance would impose a fiscal burden.

American Air Lines and Delta Air Lines had basically agreed to stop
fighting, when Transport Minister Maehara in late September came up
with a policy of having the JAL Reconstruction Task Force, a group
of experts, reformulate a reconstruction program. However, the
battle has once again become active since the end of October, when
JAL asked the Enterprise Turnaround Initiative Corporation of Japan
(ETIC) for financial assistance. The two carriers have concluded
contracts with consulting companies in order to strengthen their
appeal to the government. They have also dispatched a number of
executive-level officers to Japan.

ROOS

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