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Viewing cable 07TOKYO4689, The Japan Economic Scope--October 4, 2007
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 07TOKYO4689 | 2007-10-05 05:35 | 2011-08-25 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Tokyo |
VZCZCXRO7413
RR RUEHFK RUEHNAG RUEHNH
DE RUEHKO #4689/01 2780535
ZNR UUUUU ZZH
R 050535Z OCT 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 8305
RUEAIIA/CIA WASHDC
INFO RUEHFR/AMEMBASSY PARIS 5768
RUEHFK/AMCONSUL FUKUOKA 3577
RUEHNAG/AMCONSUL NAGOYA 2489
RUEHNH/AMCONSUL NAHA 5988
RUEHOK/AMCONSUL OSAKA KOBE 7236
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 09 TOKYO 004689
SIPDIS
PARIS PLEASE PASS TO USOECD
STATE PLEASE PASS TO USTR
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ETRD ECON JA ZO EAGR
SUBJECT: The Japan Economic Scope--October 4, 2007
¶1. (U) This cable contains the Japan Economic Scope from
October 4, 2007.
¶2. (SBU) Table of Contents
Reform
¶3. CPRR, CEFP No Longer "Wheels of Change" Under Fukuda
Administration
¶4. What Kansai Business Executives Expect of the Fukuda
Cabinet
¶5. PM Fukuda's Strong Initial Polls, "Thin" Policy Speech
¶6. JFTC Proposes Amendments to Antimonopoly Act
Foreign Relations
¶7. Hokkaido Hoping for Influx of Taiwanese Drivers Following
Reciprocal Agreement
¶8. Growing Foreign Population in Aichi Creates New Problems
Business
¶9. Bank Sales of Insurance Debate Heats Up
¶10. Japan Post Privatization Starts Well; Regulators and
Executives Focused on Compliance
¶11. Citigroup to Conduct Japan's First Triangular Merger
¶12. Tankan Survey Reveals Standstill in Manufactures' Business
Sentiment
¶13. Regional Minimum Wages Set to Rise
¶14. Core Consumer Prices Down 0.1% in August, 7th Consecutive
Monthly Drop
The Beef with Beef
¶15. Beef: Japan Pressing United States to Accept 30 Months 16.
Article Blasts GOJ Blanket Testing Policies on BSE
Safety and Security
¶16. Japanese Companies Air Concerns about 100% Scanning Mandate
¶17. Japan's Earthquake Warning System Kicks off With a Moving
Start
¶18. Police Respond to Alleged Terrorist Threat on Tokyo Subway
¶19. Japan Plans to Start Fingerprinting, Photographing
Foreigners
Kansai International Airport
¶20. Good Start of KIX 2nd Runway
¶21. Subsidy for Cargo Flights at KIX
Sporting News
¶22. Matsuzaka Brilliant As Red Sox Clinch AL East
¶23. This Week's Cables
¶24. MOFA Actions
------
REFORM
------
¶3. (SBU) CPRR, CEFP No Longer "Wheels of Change" Under Fukuda
Administration
--------------------------------------------- ----
Japan's new Prime Minister, Yasuo Fukuda, is concentrating on
consolidating his political position and has placed reform on
hold for the foreseeable future, Japanese officials told us.
Fukuda, while "reform-oriented," will take a more measured and
incremental approach to reform than his immediate predecessors.
The Council for the Promotion of Regulatory Reform (CPRR) and
the Council for Economic and Fiscal Policy (CEFP), both
powerful change agents under former Prime Minister Koizumi, are
no longer the "wheels of change" under Fukuda, they lamented.
Please see Tokyo 4659. (ECON: Sally Behrhorst/Eriko Marks)
¶4. (SBU) What Kansai Business Executives Expect of the Fukuda
Cabinet
--------------------------------------------- ----
Osaka Chamber of Commerce and Industry Chairman Akio Nomura
commented on the new cabinet in the Kansai edition of the
Nikkei Shimbun that it seems to be more stable than the Abe
Cabinet, and he expects PM Fukuda to keep economic structure
reform for sustainable economic growth. As a business leader
from the Kansai, he would like Fukuda to look at ways to
support Small and Medium Enterprises (SMEs) in many parts of
TOKYO 00004689 002 OF 009
Japan, especially the Kansai.
Kansai Keizai Doyukai Co-chairman Norihiko Saito said that
reform of the pension system and the civil service are two
urgent tasks facing the new administration. He expects PM
Fukuda to speed up introducing "doshusei" or local government
consolidation and promote decentralization, which he said are
necessary to activate local businesses.
Many business people, including other local economic
organizations such as the Kansai Economic Federation, comment
that Fukuda has not paid attention to any other area except for
the Tokyo Metropolitan Area in his career, but they hope Fukuda
will expand his perspective to encompass the entire country as
Prime Minister. (Osaka-Kobe: Phil Cummings/Naomi Shibui)
¶5. (SBU) PM Fukuda's Strong Initial Polls, "Thin" Policy
Speech
--------------------------------------------- ----
Marking a considerable improvement for the Liberal Democratic
Party (LDP), Prime Minister Fukuda's first polling numbers
indicate a popular support rate over 50 percent. Former PM
Abe's numbers had bounced around 30 percent in July and hit a
low in the mid-20s in August. Fukuda's initial support rate,
while lower than what former PMs Koizumi and Abe enjoyed at the
start of their administrations, is relatively high by Japanese
historical standards.
Having projected an image of stability and competence to the
electorate, PM Fukuda gave his first policy speech to both
houses of the Diet on October 1. The speech opened with
outreach to the minority Democratic Party of Japan (DPJ) and
focused largely on voters' domestic pocketbook issues.
Fukuda continues to straddle the question of structural reform,
promising to pursue economic reform and stable growth while
addressing reform's side-effects, including regional
disparities and the difficulties faced by small and medium-
sized businesses. He called for discussion of comprehensive
tax reform, an overhaul of the pension system, and improvements
in rural medical care, and he pledged to use the G8 Summit in
Lake Toya in July 2008 to further PM Abe's program of halving
greenhouse gasses by 2050.
The speech garnered mixed reviews. Some in the media described
PM Fukuda's agenda as "insta-policy" -- a mere continuation of
PM Abe's program -- and criticized Fukuda's presentation as
"lacking leadership." Others, including one opposition Diet
member, told us the speech was "thin" on substance and details.
A translation of the complete speech is attached below.
Further information is available in Tokyo 4556 (economic
agenda), 4562 (polling), and 4653 (policy speech). (ECON: Marc
Dillard)
¶6. (U) FTC Proposes Amendments to Antimonopoly Act
--------------------------------------------- ----
At a September 27 press conference, Japan Fair Trade Commission
(JFTC) Chairman Kazuhiko Takeshima announced that the JFTC
would seek further amendments to the Antimonoply Act (AMA),
Japan's main competition law, in the 2008 regular Diet session.
JFTC's proposals, which reportedly will go before the Diet in
March next year, would extend the statute of limitations on AMA
violations from the current level of three years to a "level
equivalent to that of the United States" (five years). The
amendments would also expand the scope of the AMA to include
"exclusionary private monopolization" (i.e., actions by a firm
aimed at barring new entrants to a market) as behavior subject
to JFTC surcharges.
Takeshima indicated, however, that the JFTC would refrain from
proposing an increase in surcharge rates as more time was
needed to review the effects of higher surcharge rates
initiated only in 2006. (ECON: Chris Wurzel)
-----------------
FOREIGN RELATIONS
-----------------
TOKYO 00004689 003 OF 009
¶7. (U) Hokkaido Hoping for Influx of Taiwanese Drivers
Following Reciprocal Agreement
--------------------------------------------- ----
On September 19, a reciprocal agreement went into effect
between Japan and Taiwan allowing travelers from each place to
drive on the other's roads with existing licenses. Prior to the
agreement, Japanese travelers in Taiwan and Taiwanese travelers
in Japan had to first obtain local licenses before driving
because Taiwan is not a party to the international driver
license treaty.
Hokkaido prefectural officials were among those who strongly
lobbied the Japanese government to sign the agreement with
Taiwan. The prefecture hopes it will be one of the primary
beneficiaries of the driving agreement. In 2006, 270,000
Taiwanese visited Hokkaido, nearly 45 percent of the
prefecture's total foreign tourists.
In early September, Hokkaido Governor Harumi Takahashi made a
promotional visit to Taiwan during which she distributed
prefectural government-produced Chinese language tourism guides
that included Hokkaido roadmaps and Japanese driving rules.
Not everyone in Hokkaido, however, is as eager to receive
Taiwanese drivers. Some rental car company representatives
express concern there will be an increase in auto accidents
with Taiwanese unaccustomed to driving on the left side of the
road. They also worry they will not have a sufficient number of
Chinese speaking employees to assist Taiwanese drivers.
(Sapporo: Ian Hillman/Yumi Baba)
¶8. (U) Growing Foreign Population in Aichi Creates New
Problems
--------------------------------------------- ----
Aichi Prefecture International Division Executive Director
Nakagami told Consulate Nagoya October 2 that dealing with the
growing population of Nikkei (Japanese-descended) foreigners,
mainly from Brazil and Peru, is one of the biggest issues the
Division faces.
Nakagami said in certain cities, such as Nishio City and Chiryu
City where many Latin Americans are engaged in auto parts
manufacturing, more than 50 percent of new elementary school
students are children of Nikkei workers. At some kindergartens,
more than 70 percent of students are non-Japanese.
Since most of these foreign students do not speak Japanese (at
least at first) many Japanese parents are worried about
lowering educational standards, and, according to Nakagami,
many teachers have become "neurotic and depressed."
Additionally, because of differing lifestyles, cases of
friction between Latin American Nikkei workers and their
Japanese apartment neighbors have grown.
Nakagami said the real problem is that there is no Japanese law
for those foreign workers and their family members on important
items such as minimum wage, overtime work and health insurance.
Each ministry has different interests and ideas, and there are
no clear guidelines. Therefore it is local governments,
particularly municipal governments, which have to face the real
challenges.
There are approximately 75,000 Brazilians, 42,000 South and
North Koreans, 36,000 Chinese, 21,000 Filipinos and 7.900
Peruvians in Aichi prefecture. In 2006, the total foreign
population in Aichi was 208,514, up by more than 32 percent in
the past four years.
In 2007, Aichi is set to pass Osaka as having the second
highest prefectural foreign population in Japan. (Nagoya:
Tamiki Mizuno)
--------
BUSINESS
--------
¶9. (SBU) Bank Sales of Insurance Debate Heats Up
--------------------------------------------- ----
Following the Financial Services Agency's (FSA) September 18
recommendation to the Financial Systems Council that bank sales
TOKYO 00004689 004 OF 009
of insurance ought to be liberalized fully in December, heavy
lobbying of Diet members has commenced.
At least fourteen groups, ranging from insurance and banking
associations to unions, consumer advocates, and the American
Chamber of Commerce in Japan (ACCJ), have appeared before a
Liberal Democratic Party (LDP) banking and finance committee.
Advocates have also appealed directly to LDP and opposition
Democratic Party of Japan (DPJ) Diet members.
Insiders tell us the anti-deregulation groups have moved away
from consumer protection issues and are stressing that
liberalization would bring job losses and instability --
especially in rural areas -- as insurance agents would face
stiff competition from banks. In doing so, they are sounding
fearful themes for those LDP members who believe the side-
effects of reform drove rural voters to abandon the party in
July's Upper House election.
A decision on whether to liberalize is expected October 22.
(ECON: Marc Dillard)
¶10. (SBU) Japan Post Privatization Starts Well; Regulators and
Executives Focused on Compliance
--------------------------------------------- ----
People lined up outside post offices October 1 to snap up
stamps commemorating the start of Japan Post's ten-year
privatization process. Media coverage of the transition was
generally positive, and minor transitional glitches appear to
have been limited to internal operations and did not affect
customer service.
Industry observers have told us they were pleased by
regulators' public statements that the new Japan Post banking
and insurance entities would be subject to the same treatment
as private companies. They similarly welcomed Financial
Services Agency Minister Watanabe's expression of concern about
Japan Post's past errors in compliance and privacy protection.
Acknowledging the challenges the group faces, Japan Post
Holding Company President Nishikawa stated he is currently
spending seventy percent of his time on compliance issues.
(ECON: Marc Dillard)
¶11. (U)Citigroup to Conduct Japan's First Triangular Merger --
--------------------------------------------- --
U.S. bank Citigroup announced on October 2 that it will make
Nikko Cordial Group, Japan's third largest brokerage, a wholly
owned subsidiary through a so-called triangular merger scheme.
The transaction value of the share exchange is estimated
approximately $ 4.6 billion. The transaction is expected to
occur in January 2008. As a result, Citigroup will own 100
percent of Nikko Cordial's shares through its Japanese
subsidiary Citigroup Japan Holdings Ltd.
The triangular merger allows Citigroup to offer its own shares,
instead of cash, to the shareholders of the Nikko Cordial as
merger considerations. U.S. and European governments have
urged GOJ to permit the use of triangular mergers as an
essential instrument to facilitate cross-border merger and
acquisitions (M&As) and eventually to accelerate foreign direct
investment in Japan.
The scheme became available in May 2007 under the new Corporate
Law, after a one year postponement due to strong opposition
from Japan's business community that fears "hostile" takeovers
by foreign firms.
The Citi-Nikko deal is the first triangular merger, coming five
months after the implementation of the law allowing the scheme.
The deal differs from the sort of case that worried Japanese
business -- that is, when a traditional blue-chip manufacturer
is acquired by foreign investors in a hostile takeover.
Citigroup and Nikko have had an alliance for a decade, and
Citigroup already holds 68 percent of Nikko shares. (ECON:
Satoshi Hattori)
¶12. (U) Tankan Survey Reveals Standstill in Manufactures'
Business Sentiment
--------------------------------------------- ----
TOKYO 00004689 005 OF 009
The Bank of Japan's quarterly tankan survey of business
sentiment, a closely watched business cycle indicator and a
principal input in the central bank's monetary policy
deliberations, found no change in the business sentiment of
large manufacturers.
The survey revealed, however, a very modest deterioration in
business sentiment among other categories -- large non-
manufacturers, mid-sized and small firms -- largely reflecting
concerns about high crude oil prices and the strengthening yen.
The survey's "headline" business sentiment diffusion index (DI)
for large manufacturers was slightly above market expectations.
The BOJ Policy Board is scheduled to hold its first post-
"tankan" meeting October 10 and 11. Many market observers are
expecting that the BOJ will maintain the present monetary
policy stance for the time being. Please see attached document
for more details. (FINATT: Shuya Sakurai)
¶13. (SBU) Regional Minimum Wages Set to Rise
--------------------------------------------- ----
Regional minimum wages, drafted by the Regional Minimum Wage
Councils in each prefecture, will rise this month between seven
and 20 yen per hour, according to the Ministry of Health, Labor,
and Welfare (MHLW).
While the exact amount will vary by prefecture, the new average
minimum wage will be 687 yen. The Labor Bureau of each
prefecture will make official announcements late in October.
Twenty-two prefectures opted for an increase that exceeded the
target the Central Minimum Wage Council set in August. Half
of those prefectures are suffering from the so called "reverse
phenomenon," whereby full-time work at the minimum wage is
lower than the social welfare benefit, leading to a
disincentive to work.
The changes to the regional minimum wage will correct the
"reverse phenomenon" in only two of the prefectures, however.
(ECON: Ai Kaneko)
¶14. (U) Core Consumer Prices Down 0.1% in August, 7th
Consecutive Monthly Drop
--------------------------------------------- ----
Japan's nationwide core CPI, which excludes perishable food
items, fell 0.1 percent in August from the year before, the
same rate of decline as in each of the previous four months and
the seventh consecutive monthly decline, the Ministry of
Internal Affairs and Communications (MIC) announced September
¶28.
This result was in line with the market consensus forecast.
Overall CPI was down 0.2 percent in August from a year earlier.
MIC also provides an alternative "core" index for nationwide
consumer prices that excludes volatile items -- i.e. energy and
all food prices (except alcoholic beverages), a measure that is
closer to more commonly used in international measures of
underlying inflation.
This index also declined again, with an August year on year
decline of 0.2 percent. The alternative core CPI has
fluctuated in the -0.2 percent to -0.8 percent range since
November 2003. As a leading indicator of national CPI,
preliminary Tokyo core CPI was down 0.1 percent in September
from the year before. (FINATT: Shuya Sakurai)
¶15. (U) CEFP's Professor Ito Calls for a Japanese Sovereign
Wealth Fund
--------------------------------------------- ----
In a recent Nikkei editorial, influential Council on Economic
and Fiscal Policy private sector member Professor Takatoshi Ito
proposed the establishment of a Japanese sovereign wealth fund
(SWF), to be generated from interest earnings on Japan's
immense official foreign reserve assets.
In order to gain greater returns, Ito also broached the
possibility of transferring the "excess" portion of Japan's
foreign reserve holdings into an SWF.
Ito, a professor at Tokyo University, stated that if the
TOKYO 00004689 006 OF 009
current $30 billion in annual interest earnings from Japan's
foreign reserve assets were to be transferred to an SWF, the
fund would reach $100 billion in about three and a half years,
roughly half the size of China's new SWF, China Investment
Corporation.
At present, Japan's official foreign reserves are managed by
the Foreign Exchange Funds Special Account (FEFSA). Ito
indicated that the FEFSA is faced with two risks: interest rate
and foreign exchange risks. This is because both assets of the
FEFSA and its interest earnings are denominated in U.S. dollars,
while both liabilities and its interest payments are
denominated in yen.
Interest earnings are booked in the FEFSA as dollar-denominated
assets, while MOF is required to issue equivalent amounts of
yen-denominated financing bills, in order to make the account
balance. Ito claims that at least $300 billion, or roughly one
third of Japan's official foreign reserves, is "excessive,"
given the standard rule-of-thumb for determining the
appropriate level of foreign reserve holdings (three months'
worth of import coverage, and one year's short-term foreign
debt).
Finally, Ito stressed that the GOJ should entrust SWF's
management to private financial institutions by clarifying the
principles of fund management. (FINATT: Shuya Sakurai)
------------------
THE BEEF WITH BEEF
------------------
¶16. (SBU) Beef: Japan Pressing United States to Accept 30
Months
--------------------------------------------- ----
MOFA officials in separate meetings with Embassy officials on
September 28 and October 2 indicated that the government would
be prepared to recommend a liberalization of beef trade but
that is was not ready to adopt international standards set by
the World Animal Health Organization (OIE).
Japan is pressing the United States to accept a trade regime
for beef short of the OIE standard set in May. The OIE ruled
that U.S. beef should not be subject to restrictions on the age
of cows used in production, while Japan is offering allowing
beef from cows up to 30 months old.
It is a familiar position, which the Japanese government
conveyed to the USG and to the press after BSE expert-level
meetings over the summer. The United States position continues
to be that Japan should adopt international standards based on
science and allow U.S. beef without age restrictions.
Under the Japanese system, the government, responsible for risk
management, must convey a recommendation to the FSC, which is
responsible for risk assessment. Japan is pressing the United
States to accept a compromise as soon as possible, arguing the
window for easing restrictions is closing. (Econ: Nicholas
Hill)
¶17. (SBU) Article Blasts GOJ Blanket Testing Policies on BSE -
--------------------------------------------- ---
"Japan is the only country in the world that is obsessed with
the article of faith....that BSE inspection ensures beef
safety," wrote Masami Kojima in the October 2 Mainichi. The
author takes to task the 100 percent blanket testing policies
that the government launched in 2001 to reassure the Japanese
public that beef on the store shelves was safe.
The article describes how blanket cattle inspection is not
correctly understood in Japan and has obscured the facts about
the BSE problem. When BSE was first discovered in Japan, the
Agriculture Minister said at the time that testing was the
"strictest...method in the world" and would ensure safety. The
public accepted the assurance and has come to embrace 100
percent testing.
The problem, according to Kojima, in a view that is already
widely understood in the West, is that testing is largely
ineffective in young animals and unreliable in older animals.
TOKYO 00004689 007 OF 009
Meanwhile, according to Kojima, far more effective means of
minimizing risk of exposure to BSE are neglected in Japan.
Even as the government has sought to phase out 100 percent
testing, the public has resisted. (ECON: Nicholas Hill)
-------------------
SAFETY AND SECURITY
-------------------
¶18. (SBU) Japanese Companies Air Concerns about 100% Scanning
Mandate
--------------------------------------------- ----
This week the Japanese Automobile Manufacture's Association,
American President Shipping Lines and the Japanese government
shared their concerns with various levels of the US government
and US Embassy concerning implementation of the law to scan 100
percent of US-bound cargo.
During a lunch with MOFA officials October 4, DHS and Econoff
worked to dispel the opposition to the legislation. Most
concerns are tied in with time and costs. While there will be
costs, it is possible that the scanning can be done with
sufficient speed that it will not impede the smooth flow of
commodities, embassy officials explained.
Japanese officials were greatly relieved to learn that the
smooth flow of trade is also a U.S. priority. Please see Tokyo
4660 for more information. (ECON: Charlie Crouch)
¶19. (U) Japan's Earthquake Warning System Kicks off With a
Moving Start
--------------------------------------------- ----
A 5.1 magnitude earthquake jolted Tokyo and surrounding areas
early Monday, injuring one woman, according to Japan
Meteorological Agency reported.
The quake hit the same day the Japanese government launched a
system that provides early warning of major earthquakes as well
as their anticipated intensities to help the public better cope
with significant tremors, according to a Nikkei newspaper
article. (ECON: Charlie Crouch)
¶20. (U) Police Respond to Alleged Terrorist Threat on Tokyo
Subway
--------------------------------------------- ----
According to the associated press, Tokyo subway's security was
tightened after receiving a telephoned warning of an alleged
terrorist attack. The caller reportedly told authorities that
a Pakistani terrorist group was hiding in central Tokyo and
planned to conduct suicide attacks on the subway by the morning
of September 28.
The caller apparently demanded about $2 million in return for
the information. Tokyo Metro found no suspicious objects or
individuals and lowered its alert level to normal Friday
afternoon. (ECON: Junko Nagahama)
¶21. (U) Japan Plans to Start Fingerprinting, Photographing
Foreigners
--------------------------------------------- ----
The government will approve a draft ordinance stipulating that
a mandatory fingerprinting and photographing of visitors aged
16 or older will enter into force on Nov. 20, according to an
October 4 Japan Today newspaper article.
The revised Immigration Control and Refugee Recognition Law
incorporating such a measure was enacted in May last year in a
bid to block the entry into Japan of individuals designated as
terrorists by the justice minister. (ECON: Eriko Marks)
----------------------------
KANSAI INTERNATIONAL AIRPORT
----------------------------
¶22. (SBU) Good Start of KIX 2nd Runway
--------------------------------------------- ----
Kansai International Airport Co., Ltd. (KIAC) announced this
TOKYO 00004689 008 OF 009
week that the airport had 7,040 international flights in August
2007, including flights using the new second runway, a monthly
record.
Analysts gave credit for the surges to increased cargo flights
and expanded China routes allowed by the second runway. In
addition, Duty Free Shop (DFS) sales at the airport also
reached a record two billion yen ($17.3 million). By expanding
China routes at KIX, the airport has rapidly increased the
number of Chinese travelers shopping at its DFS outlets.
A KIAC official said that it is good start for the second
runway, but that the company had hoped for an even stronger
kickoff. (Osaka-Kobe: Phil Cummings/Naomi Shibui)
¶23. (SBU) Subsidy for Cargo Flights at KIX
--------------------------------------------- ----
Osaka Governor Fusae Ohta announced this week that the Kansai
International Airport (KIX) promotion council, consisting of
local governments and economic organizations in western Japan,
would start to provide a subsidy from late October for new
cargo flights operating at KIX.
The subsidies are a continuation of financial support that the
council has already offered airlines for their passenger
flights since 2005.
The current subsidy for passenger flights is provided for two
years, up to 60 million yen ($517,000) for the first year, and
up to 30 million yen ($258,600) for the second year.
In addition, air carriers that begin new operations at KIX will
get another 10 million yen ($86,200). The amounts depend on
the scale of aircraft and the number of operation at KIX. The
Council has already provided total 200 million yen total for 13
carriers. The amount of additional subsidies for cargo flights
is still under discussion by the council.
Governor Ohta's strong support for KIX, including construction
of the second runway in the face of GOJ opposition, is one of
the few areas which the Osaka business community has given Ohta
high marks. (Osaka-Kobe: Phil Cummings/Naomi Shibui)
-------------
SPORTING NEWS
-------------
¶24. (U) Matsuzaka Brilliant As Red Sox Clinch AL East (U)
Japanese import Daisuke Matsuzaka helped clinch the AL East
title for the Boston Red Sox on September 28, allowing two runs
over eight innings in a 5-2 victory over the Minnesota Twins.
A nationwide Japanese audience viewed the performance on
Saturday morning on NHK. The media provided exhaustive
coverage -- including of the champagne shower that Matsuzaka and
his Japanese teammate, Hideki Okajima, participated in after
Fenway Park contest concluded.
The Red Sox had to wait until after the New York Yankees blew a
three run lead in Baltimore in the 9th inning, eventually
losing an hour after the Red Sox game concluded. (Econ:
Nicholas Hill)
¶25. (SBU) THIS WEEK'S CABLES
4661 PM Fukuda Plans No Shift in Japan Policy on Northern
Territories
4660 Japanese Government Raises Concerns Over New U.S. Law
Mandating 100% Cargo Scanning
4659 CPRR, CEFP No Longer "Wheels of Reform" Under Fukuda
Administration
4658 Going Postal: Introducing the World's Largest Bank
4656 A/S Hill's Meeting with Japan PM Advisor on Abductions
Nakayama
4655 A/S Hill's Meeting with Japan VFM Yachi
4636 Japanese Foreign Minister Yachi on Possible OEF Extension
4635 PM Fukuda Aims for Middle Ground in First Foreign Policy
Speech
4620 GOJ Responds to MTCR Emerging Technologies
4619 GOJ Export controls Agree with USG On MCTR Brokers
4562 Fukuda Off to a Good Start
4561 Japan to Play a Passive Role in Community of Democracies
4559 Japanese Readout of Iraq and Afghanistan High-Level
Meetings in New York
TOKYO 00004689 009 OF 009
4556 Japan Economic Agenda: Fukuda Starts with Domestic
Policies
4555 $3 Trillion for Your Thoughts: Japan Post Privatization
Set to Begin October 1
Back to Top
¶26. (U) MOFA ACTIONS
The 5th meeting between Japan and Vietnam on EPA negotiations
will be held in Vietnam, from October 2 to 4. Click here for
more information.
¶27. (U) This SENSITIVE BUT UNCLASSIFIED e-newsletter from U.S.
Embassy Tokyo's Economic Section, with contributions from the
consulates, is for internal USG use only. Please do not
forward in whole or in part outside of the government. The
Scope is edited this week by Charlie Crouch
(CrouchCA@state.gov) and Joy Progar (ProgarJ@state.gov)
¶28. (U) Please visit the Tokyo Econ Intranet webpage for back
issues of the Scope. Apologies, this option is only available
to State users. Please contact Joy Progar if you are from a
different agency and are interested in a back issue.
DONOVAN