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Viewing cable 08TOKYO2849, DAILY SUMMARY OF JAPANESE PRESS 10/14/08-1
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 08TOKYO2849 | 2008-10-14 06:29 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Tokyo |
VZCZCXRO4848
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2849/01 2880629
ZNR UUUUU ZZH
P 140629Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7889
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 2689
RUEHFK/AMCONSUL FUKUOKA 0336
RUEHOK/AMCONSUL OSAKA KOBE 4081
RUEHNAG/AMCONSUL NAGOYA 8405
RUEHKSO/AMCONSUL SAPPORO 0909
RUEHBJ/AMEMBASSY BEIJING 5799
RUEHUL/AMEMBASSY SEOUL 1794
RUCNDT/USMISSION USUN NEW YORK 2057
UNCLAS SECTION 01 OF 11 TOKYO 002849
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: DAILY SUMMARY OF JAPANESE PRESS 10/14/08-1
INDEX:
(1) U.S. strikes North Korea from terrorism backlist, agreement
reached on verification method; Pyongyang to resume nuclear
disablement (Tokyo Shimbun)
(2) President Bush tells Prime Minister Aso: I understand Japan's
concern (Nikkei)
(3) Text of Prime Minister Aso's statement on U.S. delisting of
North Korea (Sankei)
(4) U.S. removal of North Korea from list of states sponsoring
terrorism a blow to the Aso administration; Ruling camp losing
confidence in the Japan-U.S. alliance (Nikkei)
(5) Prime Minister Aso notified by President Bush only 30 minutes
prior to official announcement that North Korea has been removed
from terror blacklist (Yomiuri)
(6) Government greatly surprised by U.S. delisting of North Korea;
Notified by U.S. only four hours before official announcement
(Nikkei)
(7) Abductee families in disappointment call U.S. delisting of North
Korea a breach of faith (Sankei)
(8) Some family members of abduction victims take U.S. delisting of
North Korea coolly (Mainichi)
(9) Discontent in ruling camp at U.S. making light of Japan (Tokyo
Shimbun)
(10) When will the reinvestigation of the abduction issue start? No
prospect in sight for the next set of talks (Nikkei)
(11) U.S. decision to delist North Korea: Six-party members in
disarray, South Korea critical of Japan for stance toward abduction
issue (Asahi)
(12) U.S. removes North Korea from terrorist backlist; Six-party
talks to resume probable this month (Yomiuri)
(13) Yomiuri poll: Aso cabinet support rate slips to 46 PERCENT ,
with 70 PERCENT of public wanting priority given to economy over
holding an election (Yomiuri)
(14) Calls for second supplementary budget emerge in ruling camp:
Supplementary budget to be approved on the 16th (Nikkei)
(15) Participants in emergency G-20 meeting vow to address financial
crisis, involving emerging countries: Nakagawa Initiative proposed
to IMF (Yomiuri)
(16)"The U.S. should inject capital into financial institutions,"
prime minister says about financial crisis (Nikkei) 11
ARTICLES:
(1) U.S. strikes North Korea from terrorism backlist, agreement
reached on verification method; Pyongyang to resume nuclear
disablement
TOKYO 00002849 002 OF 011
TOKYO SHIMBUN (Top play) (Excerpts)
October 12, 2008
Nakahiro Iwata, Washington
The U.S. government announced on the morning of Oct. 11 (in the
early hours of Oct. 12, Japan time) that it had removed North Korea
from its list of state sponsors of terrorism. The decision came
after agreement between Washington and Pyongyang on the method of
verification of the contents of the North's nuclear declaration. The
North will now resume the disablement of its nuclear facilities in
Yongbyon. It has been 20 years and nine months since the U.S. first
listed North Korea as a state sponsoring terrorism in January 1988,
following the North's bombing of a KAL airline (on Nov. 29, 1987).
According to the U.S. State Department, North Korea has agreed to
allow experts to visit both declared and undeclared nuclear sites,
and to take and remove samples and equipment for analysis. Pyongyang
also has agreed to let the International Atomic Energy Agency (IAEA)
play an important advisory and assisting role.
The verification method reportedly will be applied to
uranium-enrichment nuclear development, as well as to nuclear
proliferation to other countries.
President George W. Bush made the final decision to delist North
Korea as a state sponsoring terrorism. However, a high U.S.
government official said on Oct. 11 that the delisting "would be a
temporary measure." The official also said that if North Korea
violated the verification method agreed on this time, the United
States would put the North back on its blacklist.
(2) President Bush tells Prime Minister Aso: I understand Japan's
concern
NIKKEI (Page 1) (Full)
October 12, 2008
Prime Minister Taro Aso talked with U.S. President George W. Bush on
the phone late at night on Oct. 11. The President explained his
decision to delist North Korea as a state sponsor of terrorism.
Referring to North Korea's abductions of Japanese nationals, he
said:
"I understand that the Japanese people have strong concern and
anxiety (about the future of the abduction issue). I want to express
my strong sympathy to the families of abduction victims. I also want
to tell them my determination to resolve the issue."
Aso received the call in Hamamatsu City.
(3) Text of Prime Minister Aso's statement on U.S. delisting of
North Korea
SANKEI (Page 4) (Full)
October 13, 2008
The following is a gist of Prime Minister Taro Aso's statement in
Hamamatsu City on the U.S. delisting of North Korea as a state
sponsor of terrorism:
TOKYO 00002849 003 OF 011
-- Anxiety is spreading in families of victims of kidnapped by North
Korea.
"For the denuclearization of North Korea, it is best to establish a
regime to conduct verification substantively. All six-party members
but North Korea are in accord on this approach. There has been no
progress on work to establish a regime for substantive verification,
and the United States has used the delisting to achieve that. The
United States has indicated from long before that this approach is
effective. I understand the United States took the step (delisting),
considering it would be better than leaving an issue totally
immovable. It's one approach."
-- The step might result in a loss of leverage on talks on the
abduction issue.
"(As if to interrupt the question) That won't happen. Your view is
totally wrong. In his telephone conversation with me, President Bush
talked about the families of victims of kidnapped by North Korea,
and I think the country will respond to the matter properly. We will
be able to discuss the abduction issue sufficiently in a variety of
talks in the course of the six-party talks. We will not lose
leverage because of this."
(4) U.S. removal of North Korea from list of states sponsoring
terrorism a blow to the Aso administration; Ruling camp losing
confidence in the Japan-U.S. alliance
NIKKEI (Page 2) (Excerpts)
October 13, 2008
The U.S.' removal of North Korea from the list of states sponsoring
terrorism has dealt a blow to the Aso administration. Although Prime
Minister Taro Aso has stressed that the abduction issue is not being
left behind, comments critical of the United States are coming out
of the government and ruling parties in succession. There is a
possibility that the target of such criticism will turn toward the
Aso administration if results on the abduction issue are delayed. A
setback on the diplomatic front, which is Aso's forte, coupled with
the global financial crisis, will affect the pending Diet
dissolution and snap election.
The Prime Minister on Oct. 12 met the press corps in Hamamatsu City
and evaluated the delisting of North Korea as a step toward nuclear
verification. Regarding concerns that Japan had lost leverage in its
negotiations with the DPRK on the abduction issue, Aso stressed,
"Absolutely not." He touched on the call he had received the night
before from President Bush to appeal his case: "Before I could say
anything, (President) Bush brought the subject up. I think that he
is dealing with it."
Chief Cabinet Secretary Takeo Kawamura, too, told the press corps:
"Our policy toward Japan's abduction issue will not be set back at
all by the delisting." But the government and ruling parties are not
all taking the delisting decision the same way as the Prime Minister
and his aides.
"Extremely regrettable," was the way Finance Minister Shoichi
Nakagawa put it when meeting the press. He was in Washington at the
time. He raised his doubts about the way the U.S. had handled the
decision, saying, "I do not know whether or not there was prior
consultation with Japan as an ally." Liberal Democratic Party (LDP)
TOKYO 00002849 004 OF 011
Deputy Secretary General Nobuteru Ishihara, appearing on a TV-Asahi
program, was critical: "It was unexpected. The timing of it was a
confusing mess."
(5) Prime Minister Aso notified by President Bush only 30 minutes
prior to official announcement that North Korea has been removed
from terror blacklist
YOMIURI (Top play) (Excerpts)
October 13, 2008
Prime Minister Taro Aso on Oct. 12 showed a degree of understanding
for the delisting of North Korea as a state sponsor of terrorism by
the United States, while indicating that there would be no change in
Japan's stance on resolving the abduction issue. But the government
and ruling coalition are visibly shocked by the United States' steps
leading up to the delisting. The government's previous response is
drawing fire from opposition parties.
Prime Minister Aso on Oct. 12 in Hamamatsu made this comment to the
press corps: "I understand that the United States has (delisted the
North) in the judgment that it would be better to take the step
rather than leaving (the nuclear issue) stalled. It's one approach."
Asked about the step's possible impact on the abduction issue, he
said: "There will be no impact. It doesn't mean a loss of leverage."
Contrary to his words, Japan has been at the mercy of the United
States.
Prime Minister Aso was notified directly by President George W. Bush
only 30 minutes prior to the U.S. State Department's official
announcement on the delisting. It was three hours after Secretary of
State Condoleezza Rice signed the delisting document. The notice
came on the night of Oct. 11 when the prime minister was in a
meeting with former Japan Junior Chamber presidents and others at a
lounge of the Grand Hotel Hamamatsu in the city of Hamamatsu. There
was a sense of urgency among his aides shortly after 11:00 p.m., and
the prime minister disappeared into a separate room. It was to place
a call to President Bush. He talked with the President on the phone
for about 10 minutes. During that period, the prime minister was not
accompanied by a secretary hailed from the Foreign Ministry. There
was not even an interpreter in the room, according to an informed
source. The teleconference was reportedly conducted by using a
telephone line via a place where there was an interpreter.
After a telephone conversation with Secretary Rice, Foreign Minister
Hirofumi Nakasone explicitly said on the night of Oct. 10: "The
delisting would not be decided on this weekend." That was because
Nakasone took the Secretary's words that the President would like to
adjust the nuclear verification framework with Japan and South Korea
as an indication that the United States would not delist the North
until the step became acceptable to Japan and South Korea, according
to a senior Foreign Ministry official. Although there have been
reports on a decision on the delisting, U.S. Republican sources have
conveyed a hopeful outlook to Japan.
(6) Government greatly surprised by U.S. delisting of North Korea;
Notified by U.S. only four hours before official announcement
NIKKEI (Page 2) (Full)
October 13, 2008
The U.S. government contacted the Japanese government about the
TOKYO 00002849 005 OF 011
decision to remove North Korea from the list of states sponsoring
terrorism approximately four hours before the official announcement
early on Oct. 12 (Japan time). Although the Japanese government
through its negotiations with the U.S. government had gathered that
the delisting was near, it was not until 8:00 o'clock in the evening
that a senior Foreign Ministry official received a telephone call
from U.S. Ambassador to Japan Schieffer.
Ambassador Schieffer, his voice somewhat flustered, notified the
official of the decision to delist, and said, "President Bush would
definitely like to talk to Prime Minister Taro Aso." When the same
official took the position that the decision to delist need not be
so hurried, Ambassador Schieffer stressed, "The President is aware
of all of Japan's assertions and fully understands them." He sought
understanding, indicating that consideration had been given to
Japan's concerns regarding the abduction issue and the nuclear
verification problem.
In connection with the abduction issue, Foreign Minister Hirofumi
Nakasone, in a telephone conversation with Secretary of State Rice
on the evening of the 10th, had just pointed out the problem areas
in the U.S.-North Korean draft agreement and transmitted his view
that it was premature to remove the DPRK from the terror blacklist.
Rice, too, explained, "The President has still not made a decision
on the delisting. We will keep in close contact with Japan." She
reportedly was complaint, saying, "Let us continue to talk."
(7) Abductee families in disappointment call U.S. delisting of North
Korea a breach of faith
SANKEI (Page 26) (Excerpts)
October 12, 2008
Families of Japanese abductees by North Korea were disappointed at
the U.S. decision to delist North Korea as a state sponsor of
terrorism on Oct. 11. They asked the Japanese government, which was
unable to dissuade the U.S. from delisting the North, what action it
would take now.
Shigeo Iizuka, chairman of the Association of the Families of
Victims Kidnapped by North Korea, said in Nara City, which he
visited to attend a gathering: "We feel helpless as everything has
been decided in places outside our reach. . . . Since we have lost
our major card for negotiations on the abduction issue, we expect
the Japanese government to take policies satisfactory enough to
cover the loss." He added: "I wonder if the Japanese government told
the U.S. in a strong tone that North Korea should absolutely not be
removed from the list since it is a serious matter for Japan."
Association Director General Teruaki Masumoto, who attended a
gathering in Sapporo on the 11th, said: "How can the nation that was
unable to dissuade its ally from delisting persuade the North to
send back the abduction victims to Japan? I regret the government's
lack of diplomatic capability." He also criticized the U.S.: "The
U.S. deceived its ally, without helping save its people's lives."
(8) Some family members of abduction victims take U.S. delisting of
North Korea coolly
MAINICHI (Page 2) (Full)
October 13, 2008
TOKYO 00002849 006 OF 011
Many family members of Japanese abductees expressed their anger
yesterday at the U.S. removal of North Korea from its list of
terrorism-sponsoring nations. But Shigeru Yokota, 75, commented
coolly: "U.S. Ambassador to Japan Thomas Schieffer told us that only
one of some 60 sanctions will be removed, so I do not think there
will be significant effects." He added: "Japan should urge the North
to implement (the reinvestigation of the abduction issue) based on
the Japan-North Korea agreement in August. If it refuses to respond
to it, Japan should independently impose sanctions. In my view,
there is no need to connect the delisting issue to the abduction
issue."
His wife, Sakie, 72, said: "The news shocked me. Since we have heard
that unless (North Korea) observes its promise, there is the
possibility of cancelling the delisting, we must carefully watch how
things will develop from now."
Shigeo Iizuka, 70, chairman of the Association of the Families of
Victims Kidnapped by North Korea, told reporters in Osaka: "With its
economic problems settled, North Korea has a major card in
negotiations with Japan. I am worried that the nation might delay or
suspend tackling the abduction issue."
(9) Discontent in ruling camp at U.S. making light of Japan
TOKYO SHIMBUN (Page 2) (Excerpts)
October 13, 2008
Prime Minister Aso indicated understanding yesterday about the U.S.
government's decision to remove North Korea from the list of state
sponsoring terrorism. But criticism has erupted from opposition
members and families of abduction victims. Such reactions might
affect support for the cabinet. This issue has developed into a new
headache for the Aso administration.
Democratic Party of Japan Secretary General Yukio Hatoyama rapped
the Japanese government response in a street-corner speech: "This is
a disgrace for Japanese diplomacy. Japan was not informed of the
decision until the very last minute."
Former Minister of Economy, Trade and Industry Takeo Hiranuma,
chairman of a group of Diet members dealing with the abduction
issue, told reporters in Honjo City, Saitama Prefecture: "President
Bush met Ms. Sakie Yokota (family member of an abduction victim) and
told her that I will never forget the abduction issue. All the more
for this, the decision (to delist North Korea) is beyond my
understanding."
(10) When will the reinvestigation of the abduction issue start? No
prospect in sight for the next set of talks
NIKKEI (Page 2) (Full)
October 13, 2008
On the question of Japanese abducted by North Korea, the most
important pending issue between Japan and the DPRK, the government
is seeking the return of all abduction victims, an uncovering of all
the facts, and the turning over of those who committed the crime of
abduction. North Korea has promised in bilateral talks to
reinvestigate the cases, but so far it has yet to start doing
anything. The government, using its own cards, such as economic
sanctions, has been pressing the DRPK for an early start of the
TOKYO 00002849 007 OF 011
reinvestigation.
In working-level talks between Japan and North Korea that were held
this June after a hiatus of approximately eight months, North Korea
promised to reinvestigate the abduction issue. Agreement was reached
to set up a committee for the reinvestigation in August and to
complete the investigation as best as possible by the fall. It
seemed that a way had been found to make progress on the abduction
issue.
After that, North Korea, citing as the reason Japan's changing
administrations from Fukuda's to Aso's, announced it was delaying
setting the committee. The government asked the North to carry out
the promise quickly, in return for the removal of two of the
sanctions, but North Korea to date has shown no indication of
honoring its commitment.
A senior Foreign Ministry official said: "There is absolutely no
prospect in sight for resuming bilateral talks with the North."
There is a strong possibility that North Korea will strongly seek
the implementation of assistance, citing as the reason the progress
just made on the nuclear front, but the government seems perplexed
about how to respond, the abduction issue holding it back.
(11) U.S. decision to delist North Korea: Six-party members in
disarray, South Korea critical of Japan for stance toward abduction
issue
ASAHI (Page 4) (Full)
October 13, 2008
(Makino, Seoul)
Following the U.S. government's decision to remove North Korea from
its list of terrorism-sponsoring nations, the members of the
six-party talks will meet soon. Friction has already arisen between
Japan and the U.S. over the U.S. decision. In addition, South Korea
criticized Japan on Oct. 12 for its negative stance about energy aid
to North Korea. China and Russia are not eager to promote
denuclearization. Disarray among the five members of the six-party
talks is thus coming to the surface.
South Korean envoy and director of Korean Peninsula peace
negotiations Kim Suk said on Oct. 12: "It is unacceptable that a
certain nation's issue will stand in the way of the six-party talks'
ultimate goal." He indirectly lashed out at Japan for its reluctance
to provide North Korea with 200,000 tons of heavy oil for the reason
of the unresolved issue of North Korea's past abductions of Japanese
nationals.
In the South Korea government, there is irritation at Japan's stance
of dwelling on the abduction issue, as one official remarked: "Japan
should be more flexible." With the U.S. decision to delist North
Korea, criticism of Japan may escalate among the other six-party
members, including China and Russia.
Kim also indicated that the agreement reached between the U.S. and
North Korea over a verification regime includes wording that can be
taken as meaning that the U.S. unilaterally interpreted Pyongyang
would accept a mechanism for verifying North Korea's uranium
enrichment program and nuclear activities. This could be a source of
contention for the future.
TOKYO 00002849 008 OF 011
A Japanese government source commented: "Fearing a collapse of the
six-party talks, the U.S. reached the agreement, even though it was
aware that the full verification of North Korea's program and
activities would be impossible." Meanwhile, China and Russia are not
expected to strictly pursue the contents of the U.S.-North Korea
agreement, based on the view that there will be no problem if the
U.S. and North Korea hold talks again after the North is removed
from the list.
In the final stage of abandoning its nuclear programs, North Korea
is expected to call on the U.S. to hold nuclear disarmament talks.
In this case, South Korea will inevitably react to its exclusion.
Stormy negotiations are expected in work to determine a final-stage
process.
(12) U.S. removes North Korea from terrorist backlist; Six-party
talks to resume probable this month
YOMIURI (Page 1) (Full)
October 12, 2008
Takeo Miyazaki & Satoshi Ogawa, Washington
The U.S. State Department announced on the morning of Oct. 11 (in
the early hours of Oct. 12, Japan time) that it had delisted North
Korea as a state sponsor of terrorism following the agreement on the
verification method of the North's nuclear report. Pyongyang has
informed Washington of its decision to resume its work to disable
(the Yongbyon complex). The six-party talks will be resumed as early
as before the end of this month, and the details of the verification
procedure will be put into a written form. Since North Korea will
unlikely to agree to the complete verification, the development of
nuclear process remains unclear.
According to the Department of State, North Korea has agreed to
allow experts to visit all nuclear facilities it declared in June.
However, experts will be allowed to visit undeclared nuclear sites
based on an agreement by both sides. Therefore, North Korea's
approval will be required for visits by experts on nuclear sites
other than the Yongbyon complex.
Meanwhile, the United States and North Korea agreed on the sampling
of nuclear materials, aimed at verifying nuclear proliferation
activities and uranium-enrichment programs.
Since the U.S. designation of North Korea as a state sponsor of
terrorism is one of the reasons for it to impose economic sanctions
on the North, even if the North is delisted, there will remain many
sanction measures. North Korea, however, had demanded for a long
time the United States delist it as a symbol of the U.S.' "enemy
policy."
The U.S. government informed Congress on June 26 of its decision to
remove the North from its terrorism blacklist after Pyongyang had
presented its nuclear report. Washington, however, delayed delisting
as the two sides had failed to agree on verification procedure.
President George W. Bush, ahead of the announcement, called Prime
Minister Taro Aso to tell him his decision. He also expressed his
intention to continue to cooperate with Japan to resolve the
abduction issue, saying: "I hold strong feelings about the abduction
TOKYO 00002849 009 OF 011
issue."
(13) Yomiuri poll: Aso cabinet support rate slips to 46 PERCENT ,
with 70 PERCENT of public wanting priority given to economy over
holding an election
YOMIURI (Page 1) (Full)
October 13, 2008
The approval rating for Prime Minister Taro Aso's cabinet dropped to
45.9 PERCENT , according to a Yomiuri Shimbun nationwide
telephone-interview survey conducted on Oct. 10-12. The approval
rating was down 3.6 points from the previous survey conducted on
Sept. 24-25, immediately after the inauguration of the cabinet. At
the same time, the cabinet's disapproval rating increased by 5.2
points to 38.6 PERCENT . Asked about the timing of the next Lower
House election in view of the ongoing U.S.-triggered global
financial crisis, 70 PERCENT of respondents said the government
should prioritize the implementation of economic pump-priming
measures over calling a general election, while 25 PERCENT said
that the government should pursue economic measures after the next
election.
Some 88 PERCENT indicated that the worldwide financial crisis and
stock plunge would adversely affect the Japanese economy.
Asked when the Lower House election should be held, 34 PERCENT said
it should be held before September 2009, when the current Lower
House members' term expires, and 23 PERCENT said it should be held
around next spring. This means nearly 60 PERCENT of respondents
expressed their hopes to go to the polls next spring or later.
Another 25 PERCENT said the election should be held immediately,
while12 PERCENT pointed to sometime around the end of the year.
Asked which party they would vote for in the proportional
representation system, 39 PERCENT cited the LDP, up 2 points from
the previous survey, and 31 PERCENT cited the DPJ, also up 2
points. As for rates of support by party, the LDP marked 38.7
PERCENT , up 1.3 points, and the DPJ 24.3 PERCENT , up 1.5 points.
Asked about the Maritime Self-Defense Force's refueling mission in
the Indian Ocean, 47 PERCENT said they support it, while 40 PERCENT
said they do not support it.
(14) Calls for second supplementary budget emerge in ruling camp:
Supplementary budget to be approved on the 16th
NIKKEI (Page 2) (Full)
October 13, 2008
The Diet will enter into deliberations on the fiscal 2008
supplementary budget at the Upper House Budget Committee starting on
October 14. The bill is expected to secure Diet approval as early as
the 16th with the DPJ indicating support for it. The DPJ then agreed
to deliberate on the bill extending Japan's refueling mission in the
Indian Ocean and its early adoption. It will then urge Prime
Minister Taro Aso to dissolve the Diet soon. Following the financial
crisis that is gripping the world now, some ruling party members are
calling for compiling a second supplementary budget incorporating
additional economic pump-priming measures. Opposition parties are
opposing the idea.
Liberal Democratic Party (LDP) Policy Research Council Chairman
TOKYO 00002849 010 OF 011
Kosuke Hori on an NHK talk show on the 12th said that a second
supplementary budget should be compiled before dissolution of the
Diet. He noted, "The economic stimulus measures should be given
shape in the form of a supplementary budget bill. We should first
focus on economic stimulus measures instead of holding an election."
Regarding the specifics of the second supplementary budget, he
noted, "We intend to boost a loan framework for small- and
medium-size businesses."
Acting LDP Secretary General Nobuteru Ishihara on a TV Asahi talk
show pointed out that the supplementary budget bill now under
deliberation incorporates a loan framework worth 9 trillion yen. He
then said that the second supplementary budget should be twice as
large as that amount. Referring to a fixed-sum tax break, New
Komeito Policy Research Council Chairman Natsuo Yamaguchi on an NHK
TV program said, "The amount should be over 2 trillion yen. Funds
can be drawn from the special fiscal investment and loans account."
The government and the ruling parties plan to finalize a package of
additional economic stimulus measures before the end of next week.
If that is all to be handled, the Diet can be dissolved in October
for a Lower House election in November. However, if a second
supplementary budget is to be compiled and submitted to the current
Diet session, it would be impossible to hold a Lower House election
before year's end. Some have said that should that occur, the
compilation of the fiscal 2009 budget would be delayed, thus putting
the cart before the horse.
DPJ Policy Research Council Chairman Masayuki Naoshima on an NHK TV
talk show warned against the move, saying, "We should establish a
new administration by holding a general election at an early date
and then implement economic stimulus measures." Deputy President Kan
Naoto the same day stressed that a second supplementary budget
should be compiled after a Lower House election.
(15) Participants in emergency G-20 meeting vow to address financial
crisis, involving emerging countries: Nakagawa Initiative proposed
to IMF
YOMIURI (Page 2) (Excerpts)
October 2008
Finance ministers and central bank governors from 20 countries,
including Japan, the U.S., European countries, as well as emerging
countries, met on October 11 (12th, Japan time) in an emergency
session. Concerned about the current situation in which a financial
crisis that started in the U.S. has spilled over to affect even
emerging countries, the participants agreed that all countries
should adopt economic stimulus packages that employ all sorts of
policy measures. President Bush took part in the meeting on short
notice. He called for unity, saying, "We will do our utmost to
address the crisis."
The International Monetary and Financial Committee (IMFC) of the
International Monetary Fund (IMF), which held a meeting prior to the
G-20, pointed out in a joint statement, "The crisis is serious and
requires exceptional vigilance and cooperation and bold action."
Finance Minister and State Minister for Fiscal and Financial Affairs
Shoichi Nakagawa during the meeting proposed his own initiative that
calls on the IMF to set up a new financial system to help emerging
countries procure capital.
TOKYO 00002849 011 OF 011
The emergency G-20 meeting was held at the initiative of the U.S.,
following a growing concern that the global economy would slide
further into recession with stock prices and currencies of emerging
countries, such as Brazil, China and India, plummeting due to the
ongoing financial crisis.
The joint statement noted that industrialized countries and emerging
countries would strengthen ties to tide over the crisis and deepen
cooperation for the improvement of financial regulations,
supervision and functions. It also underscored that every possible
economic and financial measure should be taken for the stabilization
of the financial market. As key areas which all countries should
tackle, the joint statement cited macro-economic measures, the
supply of fluidity and the putting banks on a healthy footing and
the protection of depositors.
(16)"The U.S. should inject capital into financial institutions,"
prime minister says about financial crisis
NIKKEI (Page 2) (Full)
October 13, 2008
Prime Minister Taro Aso on October 12 expressed expectations for
responses various countries would make to an action program adopted
at a meeting of the Group of Seven financial ministers and central
bank governors, which includes the injection of capital using public
money. He said, "It is desirable for a program with such specifics
to be implemented." He thus indicated his view that the U.S. should
pump public money into financial institutions.
Regarding the emergency meeting of industrialized countries, held in
an effort to stave off a financial crisis, the prime minister
indicated his perception that it depends on the U.S., saying: "If
those countries decided to inject capital into financial
institutions, it would be a big step forward. However, if the U.S.
or some other countries do not join the move, the confusion would
further deepen."
SCHIEFFER