J-SOFT POWER WEEKLY BRIEF

EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

PHOTO OF THE WEEK “WITHOUT NUCLEAR POWER IN JAPAN CHUBU ELECTRIC POWER CO. REACTIVATED ITS AGING THERMAL POWER PLANT IN TAKETOYO, AICHI PREFECTURE, THIS FISCAL YEAR.”

(AJW Asahi Shimbun)

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

IMPERIAL COUPLE PLAN MID-MAY BRITAIN VISIT “The Emperor and Empress will make an official visit to Britain for five days from May 16 to attend events celebrating the 60th anniversary of Queen Elizabeth II's accession to the throne. The government approved the trip at a Cabinet meeting Tuesday. It will be the first overseas trip for the Imperial couple since they traveled to Canada and Hawaii in July 2009..” (Yomiuri) NODA, OBAMA AFFIRM TIES / LEADERS REMAIN FIRM ON N. KOREA, URGE CHINA TO PLAY BY
RULES

“Prime Minister Yoshihiko Noda and U.S. President Barack Obama have pledged their countries will cooperate to urge China, which has become increasingly assertive in the Asia-Pacific region, to observe rules and norms of the international community. Noda and Obama also confirmed during summit talks held at the White House on Monday that the two countries would work together with the international community to prevent North Korea, which is thought to be planning a nuclear test, from taking any provocative actions. The two leaders agreed to continue their close consultations on Japan's possible participation in negotiations on the Trans-Pacific Partnership free trade agreement.” (Yomiuri) JAPAN, S. KOREA NEAR DEFENSE PACT “Defense Minister Naoki Tanaka said Tuesday that Japan and South Korea were making final adjustments ahead of signing a pact on the protection of defense secrets. The government is believed to be hoping to sign a General Security of Military Information Agreement, or GSOMIA, during talks between Tanaka and his South Korean counterpart Kim Kwan Jin, which will take place in Japan as early as later this month. It would be the first time that the two nations have signed a defense cooperation accord since the end of World War II. Under the GSOMIA, the two nations will be able to

share military data such as missile trajectory information that is collected by Aegis-equipped destroyers. The two nations also are discussing the signing of an Acquisition and Cross-Servicing Agreement, or ACSA, which would ensure the reciprocal provision of supplies, such as fuel, between Self-Defense Forces and the South Korean military. Speaking at a press conference, Tanaka said the two nations are trying to ensure the GSOMIA is signed when Kim visits Japan. In January last year, then Defense Minister Toshimi Kitazawa and Kim agreed to begin a discussion on signing the pacts. It is believed that in South Korea, there is strong opposition to working with the SDF, but Seoul is said to have decided to boost security cooperation with Tokyo in the face of heightened military tension with North Korea, such as the North's recent launch of a ballistic missile that it claimed was a rocket carrying a satellite.” (Yomiuri) SEEK A WAY OUT OF RELIANCE ON NUCLEAR
POWER

“Energy is a matter of life or death for a nation. As such, nuclear power has been an important source of energy for many countries. However, one cannot help but doubt whether Japan really needed so many nuclear power stations as all such plants have now been stopped. Japan has still not achieved a society without nuclear power plants. It is of great significance for us to experience a society that does not use nuclear power and to consider Japan's future energy situation. We should take this opportunity to prepare to change Japan's energy policy while looking back on the country's history of nuclear power. (…) As many as 70 percent of respondents to an opinion poll that the Mainichi Shimbun conducted in September last year called for a quick or gradual decrease in the number of nuclear plants. The government must not ignore the public's hope to break Japan's dependence on nuclear plants. In the short term, Japan may face tough choices between the risks of power shortages and those of nuclear accidents. However, the government has announced that Japan will pursue a society without nuclear

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

power stations under its policy of decreasing Japan's reliance on nuclear power and decommissioning nuclear reactors that have been in operation for 40 years. Therefore, the government should take this opportunity to map out a strategy of finding a way out of its reliance on nuclear power.” (Mainichi Daily News) JAPAN STOCKS DROP AS GREECE FUELS EURO EXIT CONCERNS “Japanese stocks fell, with the Topix Index falling to a three-month low, as political tension fueled concern that debt-stricken Greece will be the first nation to exit the euro, dimming the earnings outlook for exporters. (…) The Nikkei 225 has slid 12 percent since March 27, when the gauge recouped losses from last year’s natural and nuclear disasters. Stocks have fallen on concern resistance to austerity measures will worsen Europe’s debt crisis and China will refrain from further easing to spur growth.” (Bloomberg) JAPAN TO SEEK STABLE OIL SUPPLY FROM SAUDI ARABIA “Japan's Trade Minister Yukio Edano said on Tuesday he would ask for Saudi Arabia's continued support to help Japan secure a stable oil supply when he meets with Saudi Oil Minister Ali al-Naimi later in the day. (…) Japan has cut its crude imports from Iran amid tighter Western sanctions aimed at limiting Tehran's nuclear program. Edano also said that Japan is in touch with the European Union on insurance coverage for Iranian oil shipments. The EU's restrictions on Iran are due to take effect in July. The Trade Minister, who holds the energy portfolio, also said that power supply outlook for this summer in Japan's western region of Kansai looks tough but repeated that he hoped to avoid issuing a mandatory power restriction order.” (Chicago Tribune)

JAPAN'S RULING PARTY LIFTS BAN ON FORMER LEADER OZAWA “Japan's ruling party decided Tuesday to lift a 14month membership suspension on its former president, Ichiro Ozawa, likely strengthening his role in opposing Prime Minister Yoshihiko Noda's plan to double the national sales tax. The move by Democratic Party of Japan executives comes after the Tokyo District Court last month cleared the influential lawmaker and power broker of criminal charges of violating a political-funding law. (…) Analysts say more than 100 lawmakers are loyal to Mr. Ozawa, making them the largest faction in the DPJ, which has nearly 400 members. Mr. Ozawa's reinstatement will likely embolden them to speak out more forcefully against the premier, possibly threatening to abstain during the vote on the taxincrease bill, said independent political analyst Minoru Morita.” (Wall Street Journal) JAPAN'S SHARP TO SELL TALKING ROBOT VACUUM
CLEANER

“Japanese electronics giant Sharp said Tuesday it had created a robot vacuum cleaner capable of recognising and responding to simple voice commands in several languages. The Cocorobo understands dozens of phrases such as "good morning", "clean the room" and responds differently "depending on the cleaning situation", Sharp said in a statement. It will also update owners on the battery level, when the dust collector needs emptying and such and even has a camera to take snaps of areas that need cleaning. The robot speaks standard Japanese as well as English, Chinese and western

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

Japan's Kansai dialect, used in areas around the city of Osaka where Sharp is based, the company said.” (AFP) JAPAN’S INCLUSION MAKES THE TRANS-PACIFIC PARTNERSHIP A BIG OPPORTUNITY “At the Asia-Pacific Economic Cooperation summit last November, Japan announced that it was interested in joining the TPP negotiations, and Prime Minister Yoshihiko Noda has made Japan’s entry into the agreement a top priority. But to be part of the agreement Japan would likely have to commit to further opening of its protected farm and auto sectors, and this is controversial in Japan. Still, Japan’s entry into the Trans-Pacific Partnership would magnify the potential impact and import of this agreement for the U.S. economy. (…)But even though Japan’s potential inclusion is exciting, there are points of contention. U.S. agricultural producers have long been frustrated with their ability to access the Japanese market. They argue that Japan’s restrictions on U.S. beef and rice imports must be part of the TPP discussions. (…) Protections against foreign cars and auto parts are also troubling for U.S. businesses. They believe that nontariff barriers such as technical standards for cars and auto parts currently lock U.S. manufacturers out of the Japanese market. These are legitimate concerns, and TPP partner nations are also wondering whether Japan’s addition to the negotiations at this stage would slow down the current process. That's why many stakeholders, including some U.S. businesses, would in fact prefer if Japan joined the negotiations after the initial terms were put in place by the nine countries currently engaging in trade talks.” (Center for American Progress)

JAPAN'S BANKS EXPAND OVERSEAS / LENDERS BOOST PROFITS BY INCREASING THEIR PRESENCE IN FOREIGN MARKETS

“The nation's commercial banks have steadily increased their presence in overseas markets, with the outstanding balance of their loans in the Asian region hitting an all-time high at 211.9 billion dollars (about 17 trillion yen) as of the end of 2011, up 24 percent from the year before, according to the Bank for International Settlements. The overseas expansion is being spearheaded by three huge banking groups: Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG) and Mizuho Financial Group (MHFG). There are surging expectations, particularly in other parts of Asia, for Japanese banks to play a larger role as loans from European banks shrink, analysts say.’” (Yomiuri) ECONOMIC PACT WITH JAPAN TO BOOST INDIAN SMES, SAYS TRADE BODY “Trade promotion body EEPC India today said the Comprehensive Economic Partnership Agreement (CEPA) signed between India and Japan has opened new trade avenues and provides an opportunity for the SMEs of the country to evolve their products and technology. After signing of CEPA in August 2011, Japan, world's 7th largest importer of engineering goods, has eliminated tariff (customs duty) on 87 per cent of its total products. (…) India is a preferred investment destination for Japanese companies in the infrastructure and manufacturing sector and for technical collaborations, he said. The trade between India and Japan stood at around USD 14 billion in

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

2010-11. The two countries have set a target to increase bilateral trade to USD 25 billion by 2014. According to EEPC India, share of India's engineering exports to Japan's total engineering imports was only 0.5 per cent in 2010.” (The Economic Times) JAPAN TO COOPERATE WITH FRANCE'S HOLLANDE ON EU, NORTH KOREA “Japanese Prime Minister Yoshihiko Noda and French president-elect Francois Hollande have agreed to work together on the EU debt crisis and North Korea's nuclear programme, an official said Monday. Noda and Hollande discussed joint approaches to the European Union's economic troubles and the Iranian and North Korean nuclear programmes during a 10minute phone call after Hollande defeated Nicolas Sarkozy in Sunday's presidential election, a foreign ministry official told local media. Noda congratulated Hollande and told him France is a "strategic partner" of Japan, the official said. The two will meet at a G8 summit in the United States on May 18 and 19. Noda also invited Hollande to visit Japan soon, the official said. The two leaders also indicated they want to work together to launch negotiations on an EU-Japan free-trade agreement, media reports said.” (AFP)

SIR JOHN MAJOR PAYS TRIBUTE TO JAPAN AS HE
RECEIVES AWARD

“Sir John is in the Japanese capital to receive the Grand Cordon of the Order of the Rising Sun, which was bestowed on him by the Emperor at the Imperial Palace earlier in the day. The award, the highest that can be awarded to a foreign national, was in recognition of Sir John's "invaluable contribution to Anglo-Japanese relations through his work not only in the political and economic arena, but also in promoting mutual understanding," the government citation stated. Sir John, who also served as Chancellor of the Exchequer, commented on the bilateral ties between "two of the great trading nations of the world" at a luncheon. ‘I think the key message is that no nation is an island and that we are interdependent in ways that we have never been before,’ he said, adding that in the area of international trade the most important question might not be what should be done, but what should not be done. ‘There is still a great deal of the Japanese market that would benefit form opening up,’ he said. "I am strongly against protectionism.’” (The Telegraph)

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

THINK TANK FOCUS

Japan’s Territorial Problem: The Northern Territories, Takeshima, and the Senkaku Islands “As the result of its catastrophic defeat in World War II, Japan was scaled down to roughly the size it was at the time of the Meiji Restoration. In the process of the postwar settlement and demarcating its border with surrounding countries, three issues remained unresolved between Japan and its neighbors: the Northern Territories with Russia, Takeshima with Korea, and the Senkaku Islands with China. (…) Whatever the essence of each respective issue, once it was determined to be a territorial problem, its resolution was sought through negotiations by the Japanese government. Each negotiation took an entirely different course. Because of the psychological anguish regarding Russia that has gripped Japan since the summer of 1945, the Northern Territories have always been put at the center of Japan’s negotiations with the Soviet Union and its modern-day counterpart. Japan relinquished the Kuril Islands in the San Francisco Peace Treaty (1951), but since the Soviet Union did not sign that treaty, the issue was reexamined in the 1955–56 peace treaty negotiations between the two countries. The Japan–Soviet Union Joint Declaration of 1956 included the partial solution of agreeing on the transfer of the two smaller islands, Habomai and Shikotan, after the conclusion of the peace treaty, but the fate of the two larger islands, Kunashiri and Etorofu, was under a complete deadlock During the post–Cold War negotiations, there were three written agreements in 1991, 1993, and 2001, with the high

point being the one in 2001 in Irkutsk, where the two sides agreed to enter into negotiations to discuss the transfer of the two smaller islands, based on the 1956 Joint Declaration, as well as the fate of the two larger islands, based on the 1993 Tokyo Declaration. But after Irkutsk, the Japanese negotiating position disintegrated because of political turmoil. Ten years have now passed without any results, despite some additional efforts by both sides from 2006 to 2009, when for the first time in the negotiations, an idea to divide the area of Kunashiri-Etorofu apparently emerged. (…) The reasons why these issues need serious attention right now also differ entirely. In the case of the Northern Territories, after ten years of being unable to achieve any kind of breakthrough, Prime Minster Vladimir Putin made an extraordinary statement to the G-8 press corps just before his reelection to the presidency—that he was prepared to negotiate the status of the islands roughly based on the Irkutsk agreement and seek a mutually acceptable “par” solution. (…) For the Northern Territories, in this final showdown, Japan should realize squarely its negotiating position vis-à-vis Russia. (…) The “four islands in a bunch” solution that the Japanese government has maintained for so long, possibly out of fear about its own weakness, has no possibility whatsoever of being accepted by Putin. (…) The Senkakus’ acquisition in January 1895 preceded Taiwan’s acquisition through the Shimonoseki Treaty of April 1895, just as Takeshima’s annexation preceded the annexation of Korea itself.” (Kazuhiko Togo – NBR) Japan's New Grads Face Grim Job Outlook “Japan has a lower unemployment rate than the U.S. But for new university graduates here, job opportunities are shrinking. One way the government could reverse this worrying trend is to introduce policies aimed at promoting entrepreneurialism. For the time being, however, the situation does not appear likely to improve. Unlike in the U.S., university graduates in Japan typically place importance on where they want to work instead of what kind of work they want to do, with the government or large

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

companies being prime employment destinations. (…) The government announced more disheartening employment statistics on March 19. Of the 776,000 people who graduated from university two years ago, 406,000, or 52%, had not yet found work. Of those still seeking jobs, 140,000 failed to find work by the time they graduated. Also, of those that found jobs, 199,000 have quit or plan to within three years. There are several reasons for this instability. The main cause is undoubtedly the slumping economy. Nominal GDP in 2011 was 9% lower than in 2007. Also, pension reform is hurting the job opportunities for young people. Companies are now required to keep employees on the payroll until the age of 65. If they do not want personnel costs to increase, companies have to decrease the number of new hires. Government budget constraints are also adding pressure. To pave the way for a hike in the consumption tax, policymakers have to cut

expenditures, which means, among other things, hiring fewer government officials. The national government will slash hiring of university graduates by 56% on the year next year. (…) The growing competition among companies also works against the employment environment. The increased dependence on temporary workers means regular workers are bearing a heavier burden, sometimes beyond the capabilities of new regular employees. There is no quick solution to the problem. Many local governments are introducing measures to help younger people find work. But what is missing are efforts to promote entrepreneurialism. Such initiatives could ignite within younger Japanese the long under-tapped spirit to tackle new challenges.” (Masataka Maeda –JCER)

   
MOFA UPDATE

 
Visit to Bulgaria by Parliamentary Senior Vice-Minister for Foreign Affairs Ryuji Yamane
[http://www.mofa.go.jp/u_news/2/20120508_204300.html]

Statement by Prime Minister Yoshihiko Noda on Their Majesties’ Visit to the United Kingdom of Great Britain and Northern Ireland
[http://www.mofa.go.jp/announce/announce/2012/5/0508_01.html]

Holding of the Completion Ceremony of the "31st Japanese language programs for Foreign Service Officers" and the "15th Japanese language programs for Public Officials"
[http://www.mofa.go.jp/announce/event/2012/5/0508_01.html]

Telephone Talks between Prime Minister Yoshihiko Noda and President-elect of the French Republic François Hollande
[http://www.mofa.go.jp/region/europe/france/telmeeting1205_pm.html]

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com

J-SOFT POWER WEEKLY BRIEF
EDITOR: RUI FARO SARAIVA • ASSISTANT EDITORS: SEIKO SAKURAGI , EDUARDO PASSOS NUMBER 15 • WEDNESDAY, 9TH MAY 2012      

Congratulatory Message from Prime Minister Yoshihiko Noda to President-elect of the French Republic François Hollande
[http://www.mofa.go.jp/announce/announce/2012/5/0507_01.html]

Statement by the Press Secretary, Ministry of Foreign Affairs of Japan, on the adoption of the UN Security Council Resolution on the situation in Sudan and South Sudan
[http://www.mofa.go.jp/announce/announce/2012/5/0503_01.html]

Press Conference by Minister for Foreign Affairs Koichiro Gemba [http://www.mofa.go.jp/u_news/2/20120508_194951.html]

        J-SOFT POWER WEEKLY BRIEF covers news or other articles related with Soft Power in the context of the Japanese Foreign Policy. The opinions expressed are solely those of the authors and do not necessarily reflect the views of JFPO. JAPAN FOREIGN POLICY OBSERVATORY (JFPO) Osaka, Japan • Editor’s mailbox: ruifarosaraiva@gmail.com