AMERICAN EMBASSY, TOKYO PUBLIC AFFAIRS SECTION OFFICE OF TRANSLATION AND MEDIA ANALYSIS INQUIRIES: 03-3224-5360 INTERNET E-MAIL ADDRESS: tokyoots@state.gov DAILY SUMMARY OF JAPANESE PRESS April 19, 2002 ---------------------------------------------------------------------------------------------------------------------INDEX: (1) Simulating emergencies: What if war breaks out between two East Asian neighboring countries in 20XX? (2) My view on emergency legislation by Asaho Mizushima, Waseda University professor; Emergency legislation is a Cold War relic running counter to the times (3) Diet reply by Foreign Ministry director general: In hypothesizing an armed attack on Japan, no obligation on U.S. to defend Japan (4) On additional anti-deflation measures, discussions straying off course, complicated by tug-of-war over proposed early implementation of tax cuts; Government urged to compile package, without taking optimistic view ARTICLES: (1) Simulating emergencies: What if war breaks out between two East Asian neighboring countries in 20XX? ASAHI (Pages 2&3) (Full) April 17, 2002 How will Japan respond to emergencies if the government-drafted three emergency-related bills are passed in their original form? The Asahi Shimbun simulated government actions and Self-Defense Force operations based on interviews with government bureaucrats and SDF staff officers involved in the work of drawing up the bills. [Ohki (or Hiroki) Arima, Political Section, and Kuratoshi Yokoyama, Local News Section] Simulation 1—Neighboring contingency: U.S. intervenes in conflict, asks Japan for support In the year 20XX, a military conflict broke out between two neighboring states in East Asia, Country "A" and Country "B." The United States, allied with Country "B," began its military intervention with air strikes against Country "A" in order to back up Country "B." Policemen guard U.S. military bases The U.S. president made up his mind to commit troops from U.S. Forces Japan (USFJ). In conformity with a Japan-U.S. Security Treaty provision, the U.S. president proposed "prior consultations" to the Japanese government for the first time (as stipulated in the exchanges of notes regarding the Japan-U.S. Security Treaty's Article 6). The Japanese prime minister approved the proposed use of bases in Japan. The president then requested the prime minister to conduct rear support for U.S. forces and tighten the security of USFJ bases. The government acknowledged the conflict between Country "A" and Country "B" as "a situation in areas surrounding Japan that will have an important influence on Japan's peace and security (or a neighboring contingency)." Japan started out with 2 logistical support activities, such as refueling U.S. naval vessels on the high seas away from combat areas and treating sick and wounded soldiers in Japan, in conformity with the Article 6 provisions of the Law for Situations in Areas Surrounding Japan (or the so-called regional contingency security law). In response to the outbreak of terrorist attacks in the United States, Japan amended the Self-Defense Forces Law. As a result, the SDF is allowed to engage in "security operations" for USFJ bases and facilities. However, this newly added provision of the SDF Law is intended to deal with terrorism. The government therefore judged that it would be inapplicable to USFJ in this case, and the government instead mobilized riot police squads to intensify the security of USFJ bases and facilities. Simulation 2—Predictable attack: Country "A" regards Japan as enemy Country "A" released a statement to the effect that it regards Japan, which backs up U.S. forces, as an enemy. Country "A" possesses ballistic missiles that can reach Japan, and limited guerrilla attacks against Japan were also predicted. SDF builds up strongpoints on paddy fields Article 2 of the armed-attack contingency law defines "a situation in which an armed attack is predictable with an imminent threat of such an attack" as an emergency, even when there is no armed attack against Japan. The law's definition of a contingency is ambiguous. Moreover, some in the government and in the ruling coalition were cautious about acknowledging such a situation as an armedattack contingency because such might be internationally taken as a declaration of war on Country "A." But the prime minister made up his mind. The premier ordered the Security Council of Japan (SCJ) to work out a basic course of action. The SCJ set up a permanent committee of experts on contingency countermeasures in accordance with the Article 8 provisions of the revised SCJ establishment law. The newly established panel usually prepares a course of action responding to every possible emergency pattern. Japan intensified its defense of coastal districts, anticipating armed spy boats' infiltration in the disguise of fishing boats or refugee boats. Japan also steps up its anti-air surveillance to provide against missile attacks… Based on the SCJ's report, the prime minister decided on a basic course of action in a cabinet meeting. The government immediately asked for Diet approval in conformity with the Article 9 provisions of the armed-attack contingency law. The prime minister has also set up an armed-attack contingency headquarters—which is headed by the prime minister himself and consists of all cabinet ministers—in conformity with the Article 10 provisions of the armed-attack contingency law. In the basic course of action, the government takes a serious view of the possibility of guerrilla attacks on atomic power plans in particular. The government designated coastal areas surrounding those atomic power plants as "areas for SDF deployment." At the Defense Agency director general's request, the governors of prefectures with those atomic power plants entered into procedures for the use of agricultural and forest land in the designated areas. Armed SDF contingents, ordered to build up defensive facilities, began to build up strongpoints there in conformity with the Article 103 provisions of the revised SDF law. One farmer reluctantly complied with the government's need to use his farmland because he will be fined if he refuses to offer his land. Although there will be compensation from the government, he could not find it in his heart to see his paddy field being dug up. On the other hand, the government intended to evacuate the local residents of those designated areas. However, the government had foregone legislative measures needed to alert and evacuate local populations for future legislation, as prescribed in the Article 22 and Article 23 provisions of the armed-attack contingency law. Simulation 3—Increasingly imminent threat: Armed spy boats in disguise of refugee boats 3 A large number of refugee boats were crowding to Japan's coastlines from Country "A" and Country "B." Japan Coast Guard (JCG) patrol boats are on the alert. Then, top-secret information came in from the United States. There are armed spy boats from military ports in Country "A" among those refugee boats… MSDF destroyer warning, standing off refugee boats Government officials from relevant ministries and agencies met at the prime minister's official residence to discuss countermeasures. One of those officials in the meeting said, "There's no choice but to dispatch the SDF against armed spy boats. We want the government to issue an order to the SDF for defense operations." Another said, "JCG and police can cope with them if they're on the scale of several dozens." With the government reaching no conclusion, JCG patrol boats encountered refugee boats. The JCG, based on its police authority, told the refugee boats to stop, and JCG officers began boarding each of those refugee boats to inspect. However, one of those refugee boats ordered to stop at sea began scuttling. Its structure was similar to suspicious ships ever identified by the government. The prime minister judged that the scuttling boat is highly likely to be an armed spy boat, and the premier issued an order to a Maritime SelfDefense Force destroyer standing by around there for maritime security action in conformity with SDF Law Article 82. The MSDF destroyer on stage fired warning shots. The covert-operations ship returned fire with such weapons as a rocket launcher and a machinegun. However, the MSDF destroyer there was on an extension line of activities based on police authority. Therefore, the MSDF, remaining unauthorized to use armed force to repel the spy ship, was standing off the spy ship. On the other hand, the prime minister sounded out the government of one prefecture for the SDF's use of a local seaside airport in that prefecture as a base for a heliborne detachment. It was a request based on the headquarters chief's overall coordination authority stipulated in Article 14 of the armed-attack contingency law. The governor, however, was reluctant to cooperate, pointing to the danger of incurring retaliatory attacks and insisting on the necessity of ensuring commercial airlines' flight services. The prime minister is authorized to instruct the heads of local governments to implement necessary measures "if and when there is an obstacle to protecting people's lives and property or to expelling an armed attack, and if and when the necessity thereof is recognized in particular," as prescribed in Article 15 of the armed-attack contingency law. However, in case there is no specific law by then to stipulate legal grounds, the prime minister is not allowed to execute such necessary measures instead of the governor disobeying the instruction, according to Article 15 of the armed-attack contingency law. Simulation 4—Possible attack: Information about missiles being prepared There is another information from USFJ to the effect that Country "A" is fueling ballistic missiles. Their target unknown. On the other hand, a spy ship broke through the network of maritime security, and armed operatives on board the spy ship landed in Japan. Diet approval after SDF mobilization for defense operations Faced with an increasing threat to Japan, the prime minister judged that an armed attack is feared to occur. The prime minister therefore decided to order SDF mobilization for defense operations in conformity with Article 76 of the SDF law. The government modified its basic course of action, which is based on the armed-attack contingency law, in order to meet a new phase of developments, as prescribed in Article 9 of the armed-attack contingency law. In principle, SDF mobilization for defense operations requires the Diet's prior approval. 4 However, the prime minister decided to ask for ex post facto approval after mobilizing the SDF for an emergency. The Japanese government asked the U.S. government to strike missile sites in Country "A" before that country launches missiles. The United States held Country "A" in check by announcing its readiness to raid missile sites for joint actions in conformity with Article 5 of the Japan-U.S. Security Treaty. On the other hand, the mobilized SDF tanks and helicopters headed for the intruding guerrillas' possible landing points. SDF troops were to be moved at night for operational reasons. However, a special measure allowing SDF vehicles to run with no headlights on was precluded from the amendment to the SDF law this time because evacuated people would be endangered. A rocket hit an armored vehicle at night when it was running with its headlights on to abide by the road traffic law, and some SDF members were either killed or injured. The government judged that it was an attack launched by an armed spy, and the government permitted the SDF to use armed force in conformity with Article 88 of the SDF law. However, the SDF's rules of engagement (ROE), which are a manual with specific criteria for military actions, are unclear. The use of weapons was up to each SDF commanding officer in effect. "When shot at by a pistol, can we fight back with a tank?" One active SDF commanding officer did not know what to do. But his tank troops continued to search for the invisible guerrillas. Those intruding guerrillas, moving faster than expected, forestalled the SDF's encirclement. Information failed to reach local populations due to the lack of a law for alerting and other procedures. Therefore, some civilians evacuated were hit by armored vehicles heading for a battlefield, and some residents were left on a battlefield. The guerrilla commandoes engaged in subversive activities at various locations, and many houses and farms were damaged. About a month later, the SDF completely put down all guerrillas. And the damage totaled more than several hundred billion yen. The government announced its intention to consider special compensation that is not stipulated any of the current laws. On the other hand, the government was at a loss how to treat captured guerrillas because there is no law regarding the treatment of captives, as described in Article 22 of the armed-attack contingency law. (02041705im) (2) My view on emergency legislation by Asaho Mizushima, Waseda University professor; Emergency legislation is a Cold War relic running counter to the times ASAHI (Page 4) (Excerpt) April 18, 2002 -- The government has submitted three emergency legislation-related bills to the Diet. They are designed only to deal with armed attacks. This emergency legislation is essentially a Cold War relic. During the Cold War, attacks by the Soviet Union were conceivable. But today, chances are much higher for Japan to come under armed attacks as a result of the United States' intervention. This implicates a shift from defense-oriented legislation to intervention-oriented emergency legislation. If the United States attacked a "rogue state" or an "axis of evil" and Japan provided logistical support, Japan would naturally face a counterattack. Creating legislation looking like a relic of the Cold War era runs counter to the currents of history. True intension is to empower the prime minister to deal with emergencies 5 -- There is criticism that the government has put measures to fight terrorism and suspicious ships on the back burner. Japan has strong muscles, namely, the Self-Defense Forces (SDF), National Police Agency and Japan Coast Guard. But our country has not been able to use those muscles in a coordinated way. Although those bills focus on the government's response to a foreign military attack, the government's real intention, in my view, is to establish flexible emergency legislation. In any country, the top leader is constitutionally allowed to have special powers in national emergency. Such powers are left out of our Constitution. As the government of a constitutional country, they should squarely propose amendments to the Constitution to enhance the authority of the prime minister. Of all types of emergencies, natural disasters seem the most realistic to Japan. There might be an eruption of Mr. Fuji, large-scale earthquakes, or devastating typhoons. To deal with such disasters, there is the Disaster Measures Basic Law that stipulates necessary measures, such as the establishment of an emergency task force. As for public peace, the Police Law allows the prime minister to declare an emergency situation and to direct the national police system. There is criticism that Japan is ill prepared for emergency situations, but that is not always true. It was just that military emergencies has been ruled out simply because mobilizing troops runs counter to Article 9 of the Constitution. -- A bill dealing with an armed attack has a number of principles, such as minimizing restrictions on people's rights. Don't they serve as brakes? The order of those "principles" has problems. For instance, "measures for local public organizations and designated public organizations" and "the people's cooperation" take precedence of "efforts for averting an armed attack." This offers a glimpse into the government's intention of totally controlling local governments, public organizations and the people for national defense. -- The definition of an armed attack seems unclear. "A situation where an armed attack is expected" comes form Article 77 of the SDF Law that stipulates requirements for issuing an "order to stand by for defense operations." "An order to stand by" means SDF personnel have to stay at their bases. At that stage, the government is not allowed to expand its interpretation of emergency and restrict civic rights. The SDF Law has a provision requiring business operators in such sectors as medicine, construction and transport to obey the government's order. That provision, however, will not be applied until after an order for defense mobilization is issued. government officials who know little or nothing of the actual situation. The government should push ahead with decentralization in security as well. -- "Cooperation of the people" was added as a result of talks with the ruling coalition. Is the government trying to press a sense of loyalty on the Japanese people who have been taking peace for granted for decades? As was proven by the volunteers after the Great Hanshin [Osaka-Kobe] Earthquake, people are not helpless at all when they are united to save their country. The government regards citizens only as objects to obtain cooperation. (02041804st) Setback in Diet involvement -- How should the Diet involved in the matter? In principle, defense mobilization requires prior Diet approval. However, according to basic response policy, Diet approval can wait until after a Cabinet decision. What's more, the government does not have to obtain Diet approval until after taking measures. So it is essentially a setback on the part of the Diet. The question is, what if the Diet did not approve defense operations? Mobilized SDF personnel are required to withdraw "immediately." But according to basic policy, they are required to withdraw "swiftly." In legal terms, "swiftly" is slower than "immediately." The neighboring emergency law stipulates that the mobilized SDF personnel must withdraw "swiftly," deeming they cannot pull out "immediately" because U.S. troops are also involved. The government used the same expression. This indicates that "Diet disapproval" is not in the dictionary of bureaucrats. -- The relationship with local governments is one of the focal points. The government has created a system that will allow the prime minister to issue orders directly to local governments by bypassing governors. But there might be cases where decisions by local areas are correct. Chances of making erroneous decisions might increase if matters were left to central 6 (3) Diet reply by Foreign Ministry director general: In hypothesizing an armed attack on Japan, no obligation on U.S. to defend Japan YOMIURI (Page 4) (Full) April 18, 2002 North America Bureau Director General Ichiro Fujisaki of the Foreign Ministry yesterday in the Lower House Foreign Affairs Committee expressed his interpretation that in a contingency that hypothesizes an armed attack on Japan, there would be no obligation on the United States to defend Japan. He said: "The obligation (for a joint response by Japan and the U.S. as set) under the U.S.-Japan Security Treaty would be at the time when Japan had been attacked by an armed force." He was responding to a question from Minshuto (Democratic Party of Japan) member Yutaka Kuwahara. On this matter, a government source explained: "It means that [although] the U.S. armed forces bears no obligation under the security treaty, there is still a possibility of the U.S. mobilizing its forces." (02041804bb) (4) On additional anti-deflation measures, discussions straying off course, complicated by tug-of-war over proposed early implementation of tax cuts; Government urged to compile package, without taking optimistic view YOMIURI (Page 9) (Page 9) (Slightly abridged) April 18, 2002 Discussions in the government on additional anti-deflation measures are straying off course. The Council on Economic and Fiscal Policy and the Finance Ministry have been at loggerheads over the propriety of the proposed early implementation of tax cuts – an eye-catcher in the additional package. The Japanese economy, beset with huge non-performing bank loans, remains feeble. Japan relies on the U.S. economy in bringing about economic recovery. Some signs of economic recovery have already appeared, but should the government fail to hammer out proper and effective additional measures, it might find it difficult to achieve it. Positive arguments tone down During a meeting of the Council on Economic and Fiscal Policy on April 16, a member from the private sector who was positive about additional antideflation measures suggested that the government should judge whether it is proper to work out additional measures after looking into the national income statistics in the January – March term due out in early June. This suggestion seems to have prompted many participants to incline toward shelving the task of additional measures After the government came up with the package of anti-deflation measures late in February, stock prices shot up in part because of the effect of restrictions on short selling, and eventually concerns about a "March financial crisis" were diminished. Such a circumstance has eased the heightened sense of alarm in the government and also affected the proceedings of discussions in the policy advisory council. 7 On April 2, the three ruling parties issued an emergency package of additional anti-deflationary measures featuring tax breaks. But set off by the disclosure of the results of the Financial Services Agency's special inspections into leading banks, positive arguments for additional measures have been toned down. Some persons criticize the inspections as insufficient, but an increasing number of observers, looking at surging stock prices, suggest, "It would be better to take a drastic treatment from a medium- to long-term perspective." Struggle for leadership Many see sometime before the Kananaskis summit in Canada this June as the targeted time limit for additional anti-deflation measures. But some have begun to call for implementing tax cuts first, instead of mapping out an additional package of various types of measures. In the Council on Economic and Fiscal Policy and ruling parties, many members are calling for implementing tax breaks related to investment, land and inheritance during fiscal 2002. To make up for the drop in tax revenues, they call on the government to cut its expenditures and use the proceeds from the sale of state property. Finance Minister Shiokawa in a meeting of the advisory panel on April 16 also indicated his view of tolerating earlier tax cuts on the condition of tax hikes in the near future. Some observers predict that affected by his suggestion, the trend of discussions in the government and ruling camp might incline toward earlier implementation of tax cuts. Finance Ministry officials, however, are prudent about the possibility of tax cuts being carried out alone. Prime Minister Koizumi also holds a cautious stance toward early tax cuts, saying: "Ongoing discussions on the tax system should be reflected in our policy for fiscal 2003. We should not conduct the discussions in a hasty manner." Some business leaders voice expectations for early tax breaks as a measure to put the economy on a steady recovery path. But what conclusion will come out remains murky, with various motives crisscrossing and due to the struggle for leadership between the Prime Minister's Office and the ruling camp as well as between the Council on Economic and Fiscal Policy and the Finance Ministry. Specific tax-cut measures In case the government decides to implement tax breaks during this fiscal year, the focus of discussions will likely be on stepped-up measures to bolster corporate research/development and capital investment. Now, discussions have been conducted on measures to allow not only small firms but also major companies to deduct a certain percentage of their research/development expense accounts from their corporate taxes and to introduce a depreciationacceleration system aimed at retrenching depreciations by moving up the allocation of depreciation outlays for machinery and facilities. Some expect measures to be worked out to expand the amount exempted from taxation on gifted funds to purchase housing as well as to lighten the burden of land transfer profit tax and real property acquisition tax. Another measure to be considered is the possible introduction of a new system to consolidate gift and inheritance taxes so that the tax burden charged on property donated by relatives while alive will be eased, thereby encouraging the transfer of assets from elderly people to younger relatives. In addition, discussions have been conducted on an expansion of financing by governmentaffiliated financial institutions and positive utilization of the government's fiscal investment and loan program. Households have trimmed their spending due to such factors as concern about job security. Under such circumstances, no one can predict the future of 8 the Japanese economy. In order to put the economy on a stable recovery track, the government needs to swiftly come up with substantial additional measures. Major items emerging as additional anti-deflation measures [Tax system] Significantly upgrade the depreciationacceleration system to boost corporate capital investment. Expand the scope of subjects applicable to the measure to deduce a certain percentage of the research/development expense accounts from the corporate tax. Increase the amount exempted from taxation on gifted funds to purchase housing (now 5.5 million yen) Introduce a new system to consolidate gift and inheritance taxes so that the tax burden charged on property donated by relatives while alive will be eased, thereby encouraging the transfer of assets from elderly people to younger relatives. Reduce taxation on land transfer, such as the real property acquisition tax and the registration tax. Implement a package featuring the above measures in fiscal 2002. [Fiscal investment and loan program] Expand financing by the government's financial institutions for small companies. Promote urban-redevelopment projects by making use of the Urban Development Corporation. Strengthen the function of the Resolution and Collection Corporation with an eye on accelerating the disposal of non-performing loans. [Others] Establish "economic special districts" to urge startups in frontier industries by promoting deregulation. Introduce a consecutive-vacation system to activate the tourist and leisure industry. Ease restrictions on the building-to-land ratio and the ratio of building volume to lots with the aim being to effectively use land. (02041804ys) 9