Power Struggles in the Diet, A Strong Yen, Whaling Season Opens and Fingerprinting: TPR News for Monday, November 26, 2007
In this edition of TPR News: Politicking and power struggles continue in the Diet as the LDP gets set to ram through the MSDF refueling bill over Upper House objections and the DPJ mulls over the possibility of censuring Prime Minister Fukuda; the US has a man in Pyongyang; the Yen hits a two-and-a-half year high against the dollar; the Ministry of Health, Labor, and Welfare makes dire predictions for Japan’s future economic health; JAL increases fuel surcharges; Japanese whalers go after humpbacks; the Michelin guide to Tokyo is released; and Japan begins fingerprinting and photographing foreigners upon entry.
Politics
It’s been a busy couple of weeks. First, after offering to resign, then not doing so and returning to the head of the DPJ with some penitent remarks, Ichiro Ozawa quickly returned to form and his priority: getting the DPJ into power. In an interview with the Asahi Shimbun, Mr. Ozawa said the DPJ would consider forming a coalition with any party except the LDP, put to rest rumors that he would leave the party with enough Upper House members to tip things back the LDP’s way, and said that, while the DPJ wouldn’t compromise with the LDP on a permanent SDF dispatch law, it would seek to revise the Constitution to accomodate such activity.
Three weeks ago on Wednesday, the DPJ-led Upper House refused to confirm the nominations of three senior bureaucrats to posts on government councils related to the ministries where they spent their careers on the grounds that such appointments would consitute amakudari. The rejections were the first in Japan’s government since 1951 and the first since the long-ruling LDP was founded. Unlike ordinary bills, on which the Lower House can override Upper House opposition, such government appointments require the approval of both houses.
The following Thursday, Yasuo Fukuda arrived in Washington for his first visit to the US as Prime Minister. He spent Friday meeting with President Bush, who gave assurances that the US was concerned about the North Korean abductee issue even though it looks unlikely that such concerns will slow down America’s removal of North Korea from the list of state sponsors of terrorism - a move Tokyo opposes. For his part, Fukuda promised to pass a bill allowing the SDF to participate in ISAF activities in and around Afghanistan. Fukuda then dined with Bush and Defense Secretary Robert Gates on US beef, which Bush has insisted on serving to every visiting Japanese Prime Minister. Both sides, of course, reaffirmed the importance of the US-Japan alliance to regional security and Bush, as is his wont, made a series of irrelevant observations - both he and Fukuda had fathers who’d held the top job, both had worked in the oil industry, etc. Bush did not, however, point out that neither he nor Fukuda had the support at home or the clout to push for any substantive changes or new agreements.
The visit was largely viewed as a successful one for Mr. Fukuda. Lest he gained confidence in his ability to increase Japan’s participation in the Six Party Talks process even without a final resolution to the adbuction issue, he was greeted by protests from the association of abductee families, which has strong support within Fukuda’s LDP and is not as keen on the pragmatic approach as Mr. Fukuda himself is.
Saying, “Japan-U.S. relations will not be affected (if the MSDF doesn’t refuel). The LDP should cool off and start anew,” Ichiro Ozawa indicated the DPJ’s opposition to extending the extraordinary Diet session beyond the December 15th expiration of the current extension.
Expressing a sentiment with which it would be hard to disagree, he told Fuji TV, “Two months have been wasted because of the Liberal Democratic Party’s own circumstances.
“The LDP’s strategy of just wasting Diet time is basically no good when substantial debate cannot take place so close to the year’s end.”
Given the DPJ’s eagerness to put pressure on the LDP over scandals involving close ties between defense contractors and Defense Ministry (formerly Defense Agency) officials and the DPJ’s opposition to the LDP’s Indian Ocean refueling bill, it is unlikely that the bill will pass the DPJ-controlled Upper House, which leaves the Diet in the same position it’s been in for some weeks now: the DPJ will reject the bill, which means the LDP can use its supermajority in the Lower House to force it through, which then pushes the DPJ to try its luck by passing a non-binding censure resolution against Prime Minister Fukuda in the hope that it might cause the LDP to call a snap election, which would likely cause the LDP to lose a few seats, maybe even its supermajority. As Tobias Harris of Observing Japan points out, though, there is no precedent for such a censure motion toppling a government.
As this edition of TPR News hits the air, Fukuda and the LDP are set to force the MSDF refueling bill through the Diet and Ozawa says he sees this as a situation disadvantageous to the ruling coalition, presumably meaning that forcing the bill through the Diet, bypassing Upper House rejection, would be publicly unpopular.
In Kochi on Sunday, Masanao Ozaki, a former bureaucrat in the Ministry of Finance, rode the support of both the ruling and opposition coalitions to a victory over three opponents in the gubernatorial election. At 40, Ozaki is the youngest governor in Japan and succeeds the reformist enemy of old politics Daijiro Hashimoto in the Governor’s office.
In foreign affairs, the Mandarin-speaking Kevin Rudd won the Prime Ministership of Australia - a result that could be unfavorable for Australia’s second-largest trading partner, Japan, of course. At issue is whether Mr. Rudd, who has a well-known affinity for China, will place Australia’s relations with Japan in the backseat to emerging Sino-Australian ties.
In an interesting development on the North Korea front, South Korea’s Chosun Ilbo quoted an anonymous US State Department official as confirming, ‘’A foreign service officer in charge of administrative affairs from the U.S. State Department has been staying at the Koryo Hotel in Pyongyang, using his room as both an office and living quarters.”
Maybe he’s looking for abductees.
Business and the Economy
During trading on Friday, the yen gained to its highest level against the dollar since June 2005, moving into the upper 107 range. Economic and fiscal policy minister Hiroko Ota told reporters on Thursday, “If the yen further gains ground from the current level and keeps its strong position beyond the year-end, it would cause me worry.”
As investors rush to sell dollars, worries over the near-term health of the US economy mount, especially with regards to the depth of the subprime crisis. Bloomberg reported last week that as of September 30, Japanese banks had admitted to holding 1.3 trillion yen in investments related to the subprime mortgage market. Japan’s two largest banks, Mitsubishi UFJ Financial Group and Mizuho Financial Group, have both reported cuts in profits for the first half of 2007.
Foreign investors were net sellers of Japanese stocks for the two most recent weeks for which figures from the Tokyo Stock Exchange are available. From November 12-16, overseas investors sold off 195,746,000,000 yen worth of Japanese shares, while 281,777,000,000 million yen worth of shares were dumped in the previous week. Trust banks have stepped in to be net buyers of shares over the past weeks, apparently seeing an opportunity to add shareholdings at discount prices to the pension fund holdings.
On Friday, the Ministry of Health, Labor and Welfare announced more gloomy news for the future of Japan’s economy. According to the Ministry, Japan’s labor force stands to fall by 4.4 million workers over the next decade, and could lose up to 10.7 million workers by 2030. The ministry also stated that if measures were taken to allow women, elderly people and young people to find work more easily, the loss to the workforce over the coming decade could be limited to one million workers. The ministry reported that in 2006, 48.5% of the nation’s women of working age held jobs, a decline of 1.5% from 1996. The ministry also claimed that workers facing mandatory retirement ages see less and less of an incentive to return to work, as companies continue to re-hire them at lower wages.
Thanks to Debito Arudo for calling our attention to the next story: The BBC has picked up on ongoing abuses occurring within the framework of Japan’s foreign trainee program. According to the BBC, in its most recent annual report on human trafficking, the US State Department has stated
some migrant workers are reportedly subjected to conditions of forced labor through [its] foreign trainee program.
While Japan Air Lines has decided to increase its fuel surcharge for international flights this winter, rival All Nippon Airways has announced that it does not plan to take any such steps. By not increasing its fuel surcharge, ANA flights to the United States will be priced about 8,000 yen lower per ticket than those of JAL. This will be the first time that ANA and JAL will not operate with the same fuel surcharge levels.
Honda has announced it will invest $140 million in upgrading its existing factory in Mexico. The company expects to sell 12% more vehicles in Mexico than last year, and projects an further 10% rise in sales for 2008. Honda currently holds about 5% of the market share for autos sold in Mexico, which puts it behind six other automakers. Upgrades to the Mexico plant will also allow it to be used for production of the two-seater Big Red vehicle, which will be sold in the United States.
NTT DoCoMo has announced plans to get a competitive edge over its competitors by planning to issue cellular phones with better sound quality. The move is intended to lure users of the “One-seg” digital television broadcasts away from KDDI’s AU brand, which already boasts high quality sound on several handsets. DoCoMo intends to offer a Dolby Surround Sound-equipped model manufactured by Sharp, a phone with a sound card from Yamaha made by NEC, and phones with built-in Panasonic speakers from both Panasonic and Sony Ericsson.
And finally, at the 2007 Canmaker Summit held in Chicago
Society
Humpback whale hunting has resumed this year after Japan decided to include a quota of 50 humpbacks in this year’s trip to the waters off Antarctica. The fleet of whaling ships is also hoping to haul in some 850 minke whales and 50 fin whales. The last time that the Japanese whaling fleet had actively pursued humpbacks was in 1963.
While 50 dead humpbacks are unlikely to endanger global populations of the whale, the decision has caused contempt in several corners of the world. Aquariums across Europe have responded by pulling all Japanese products from their gift shops. Unfortunately, much like the work of environmentalists over the years, any small scale boycott is unlikely to have much of an effect on policy in Japan. Mysteriously, recent research into the toxicity of whale meat, which is fed to students at public schools in some parts of Japan, has gone largely unreported, and most consumers appear to be unaware that whale meat can often contain high levels of cancerous dioxins. As whales are at the top of the food chain and enjoy relatively long life spans, they have ample opportunity to absorb manmade pollutants and mercury. These have been known to cause developmental problems in humans.
An international moratorium ceased Japanese commercial whaling in 1986. Japan began its “scientific whaling” missions the following year. Whale hunting season began in September.
Michelin, the French tire company that also publishes guide books detailing the world’s dining hotspots, finally got around to doing a survey of Tokyo’s upscale eateries and handed out stars to some 150 restaurants. With eight establishments earning admission to the coveted three-star club, Tokyo has been crowned the best city in the world in terms of culinary quality. Paris still boasts more three-star restaurants, but Tokyo easily eclipsed the competition when tallying total stars earned. This should come as no surprise because the greater Tokyo/Yokohama area is home to more than 20 million residents. A food and restaurant industry catering to such demand is bound to come up with a few top level options for consumers. Paris and its suburbs, on the other hand, house less than 10 million people.
Japan began fingerprinting and photographing foreigners at all ports of entry to the country last week. While being touted as a measure to combat terrorism, the system has recently been lauded for catching at least five non-Japanese who tried to re-enter the country after previously having been kicked out. Why catching former visa-overstayers at the border is grounds for maintaining a costly immigration policy that was revived after being put to rest back in the 1990’s has yet to be explained to taxpayers. Japan’s fingerprinting and photographing follows in the footsteps of America who instituted a similar immigration barrier in response to the September 11th attacks. One major difference, however, is that Japan is fingerprinting long term residents, including foreigners with permanent residence visas, as well.
Related Posts:
- Debito.org Newsletter for November 12, 2007
- Debito.org Newsletter for November 28, 2007
- Debito.org Newsletter for November 5, 2007
- BizCast Japan #9: Toto, Muji, Uniqlo, Mobile Phone Advertising, Construction, Sony Financial, Fingerprinting, and the State of Japan’s English Language Teaching Industry
- Debito.org Newsletter for October 29, 2007










