Recent Japan News

Democratic Party of Japan (DPJ) leader Ichiro Ozawa announced on Monday afternoon that he will be stepping down, following a political donation scandal.

"I have decided to resign by sacrificing myself for the party to win the upcoming election and bring about a change in regime," said Ozawa at a press conference at the largest opposition party's headquarters in Tokyo.

He also insisted that his resignation is to calm turmoil within the party, and not to take the blame.

"My entire aim is to increase party solidarity and strengthen party unity," he said.

Regarding the selection of his successor, Ozawa said, "It will be conducted after Diet deliberations on the supplementary budget draft for fiscal 2009."

DPJ deputy leader Katsuya Okada is the most likely successor, but he has not yet made an announcement to that effect. Also in the running are Secretary General Yukio Hatoyama, and Acting President Naoto Kan.

(Mainichi Japan) May 11, 2009


TOKYO (AP) -- Japan's biggest bank, Mitsubishi UFJ Financial Group Inc., said Monday it will swap $600 million of its preferred shares in Morgan Stanley for common stock to keep its voting rights stake of the U.S. bank above 20 percent.

Its purchase of 25 million shares is part of Morgan Stanley's new share offering announced Friday after the U.S. government called on 10 banks to raise more capital. Morgan Stanley faces a $1.8 billion shortfall, according to the report. The U.S. bank said it will offer 167.9 million common shares for $24 each in an effort to raise gross proceeds of $4 billion.

The transaction will not require Mitsubishi UFJ, or MUFG, to pay additional cash. Instead, Morgan Stanley will buy back some preferred shares MUFG purchased last year in exchange for the new common stock, which unlike preferred shares, come with voting rights.

MUFG currently holds a mixture of preferred shares and common stock. It decided to swap its preffered holdings for common stock to ensure that its voting rights do not fall below 20 percent after Morgan Stanley's new share offering, said MUFG spokesman Takashi Takeuchi.

Since Mitsubishi UFJ gave Morgan Stanley a $9 billion lifeline in October in the wake of Lehman Brothers' collapse, the two companies have been examining ways to propel their alliance forward even as the world economy fell on hard times. In March, Morgan Stanley and MUFG set plans to merge their Japanese brokerage units into a new securities company.

"The purpose of this investment by MUFG is to maintain and strengthen the strategic alliance between MUFG and Morgan Stanley," the Japanese bank said in a statement.

In trading Monday, MUFG jumped 4.7 percent on the Tokyo Stock Exchange in line with big gains among financial issues. The benchmark Nikkei index was down 0.7 percent.

(Mainichi Japan) May 12, 2009


JAL airliner engine ingests object on ground in U.S.

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LOS ANGELES (AP) -- A metal baggage container was sucked into an engine of a Boeing 747 as it was leaving a terminal gate at Los Angeles International Airport on Monday, authorities said. No one was injured.

The incident occurred as Japan Airlines Flight 61 to Narita, Japan, was pushing back from the terminal gate Monday afternoon, said Marshall Lowe, an airport spokesman.

Federal Aviation Administration spokesman Ian Gregor said a baggage cart was being towed by at the same time and the engine ingested one of its containers.

The big metal container became lodged in the outer left-side engine of the four-engine jet.

The 245 passengers were taken back to the terminal.

Federal investigators were examining the jet, Gregor said.

(Mainichi Japan) May 12, 2009


AIG sells Japan headquarters for $1.2 billion

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CHARLOTTE, North Carolina (AP) -- Embattled insurer American International Group Inc. said Monday it is selling its Japanese headquarters to Nippon Life Insurance Co. for $1.2 billion in cash.

The transaction, which is among the biggest divestitures New York-based AIG has made to reimburse the U.S. government for its massive infusion of aid, is expected to close in the second quarter.

The 35-year-old building is 15 stories and sits on prime real estate in central Tokyo, next to the Imperial Palace. The property consists of about one acre of land, the company said.

AIG's roots in Japan extend back to 1946, and the company is now the country's biggest foreign casualty insurer.

"AIG is pleased to effectively monetize this asset within the context of its restructuring effort," AIG Chief Executive Ed Liddy said in a statement. Media reports last week discussed the possible sale of the building for around $1 billion.

Separately, an internal memo with the subject line "Seize the Future" cited by The Wall Street Journal noted AIG's turnaround may take some time.

In a memo dated April 23, an initiative code-named "Project Destiny" involved a 45-day review of the New York-based insurer's businesses that's supposed to lead to a multiyear restructuring plan, the report said.

AIG has received $182.5 billion in financial support from the government since September.

A large part of the memo, sent to employees by e-mail from Liddy, consisted of an update on the project by AIG Chief Restructuring Officer Paula Reynolds, according to the paper.

The project may be discussed at a Congressional hearing about AIG, scheduled for Wednesday, the report said.

AIG spokesman Mark Herr said the company regularly posts "Seize the Future" memos to employees, and a recent memo did discuss restructuring efforts by the company.

In an e-mail to The Associated Press, Herr noted, that in December Liddy said: "The U.S. government has put a five-year timeframe on our arrangements. Thus, we don't need to hold a 'fire sale.' So we are committed to identifying buyers that will honor our values and recognize the contributions of our people."

The U.S. government provided AIG with an $85 billion loan in September. As market conditions worsened and losses piled up at the insurer, the government revised and expanded its loan package to AIG several times. The package of loans now totals nearly $180 billion after being expanded in March when AIG reported a fourth-quarter loss of $61.7 billion, the largest ever quarterly corporate loss in U.S. history.

During the first quarter, AIG said it lost $4.35 billion, or $1.98 per share, compared with $7.81 billion, or $3.09 per share, during the same quarter last year.

As part of the loan package, the government has also taken a roughly 80 percent stake in the insurance giant.

Since its initial cash infusion, AIG has been working toward repaying part of the government loan by selling off business units. The company has said it plans to plans to retain its U.S. property and casualty and foreign general insurance businesses, and a stake in its foreign life insurance operations.

Last month AIG sold its car insurance unit, 21st Century Insurance, to Zurich Financial Services Group for $1.9 billion. The transaction is the largest divestiture by AIG since September, and one of 11 asset sale agreements it has reached the past few months.

Recent media reports have also said AIG may also be nearing a deal to unload its airplane leasing business, International Lease Finance Corp.

In March, AIG said it would spin off AIU Holdings, its property and casualty insurance business, and give the company its own board of directors, management team and brand distinct from that of the embattled company, which has also been embroiled in controversy surrounding bonuses paid to employees. In April, AIG transferred AIU Holdings to what's known as a special purpose vehicle in preparation for the potential sale of part of the business.

Shares of AIG fell 6 cents, or 3 percent, to $1.95 in afternoon trading Monday.

(Mainichi Japan) May 12, 2009


A group of Mongolian sumo wrestlers, including yokozunas Asashoryu and Hakuho, played a golf match on Friday, just two days before of the start of the Summer Grand Sumo Tournament, it has emerged.

"It's unbelievable that they played golf at a time like this. I would dismiss them if they were my disciples," fumed one stablemaster belonging to the Japan Sumo Association.

According sources close to the event, about 10 grapplers, including Kakuryu, Kyokutenho and Mokonami, played a golf match in Chiba Prefecture on Friday.

Asashoryu and Kakuryu are scheduled to face off in a bout on Sunday, the first day of the summer tourney. The face-off was only announced on Friday.

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(Mainichi Japan) May 9, 2009


OSAKA -- The Japan open robot soccer cup kicked off here on Friday, with a record 222 teams from six countries pitting their technical and mechanical skills against each other.

The RoboCup Japan Open 2009 Osaka features teams from Japan, the United States, China, Thailand, Spain and Brazil, with some 700 participants taking part.

The event's organizing committee, formed by the Osaka Municipal Government, researchers and other parties, hopes the tournament will promote robotics development. The organizers' goal is to have a robot soccer team that can beat the human soccer World Cup champions by 2050.

The tournament, which runs through Sunday, is divided into six leagues, including a humanoid league for bipedal robots.

(Mainichi Japan) May 9, 2009


Prime Minister Taro Aso has announced in the Diet that Japan is planning to host an international conference on global nuclear disarmament in either Hiroshima or Nagasaki.

Aso announced the plan for the conference during a Lower House Budget Committee meeting on Friday, ahead of the 2010 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons.

Referring to U.S. President Barack Obama's intention to hold an international conference on global nuclear disarmament within a year, Social Democratic Party lawmaker Tomoko Abe asked Aso to promote Japan as a potential host.

"We need to keep Hiroshima and Nagasaki from competing in bidding for the conference and then carefully decide on the place," said Aso. "After that, I would like to tell the United States that Japan has the very place to host the conference."

 (Mainichi Japan) May 9, 2009


Tokyo police arrested a man on Friday for posting a death threat on an Internet forum against singer Kumi Koda.

The 31-year-old fan, identified as Yosuke Nozaki from Kawagoe, Saitama Prefecture, admitted to a charge of intimidation.

"I was going to kill Ms. Koda and then die myself," he was quoted as telling police.

Nozaki allegedly posted the message on a blog run by the president of Avex Group Holdings, Koda's record label, calling her "the betrayer of (her hometown) Kyoto," and threatening to murder her on a bullet train platform at JR Tokyo Station.

Police said they received a report on the posting in late March, and traced it back to Nozaki.

(Mainichi Japan) May 9, 2009


Major video game developer Capcom announced Friday that it has set a record high for its sales in fiscal year ending March 2009.

According to Capcom's consolidated financial report in March 2009, the company's sales jumped to a record high of 91.8 billion yen, up by 10.6 percent from the previous term and growing for five straight terms.

Capcom attributes the increased sales to new hit titles, including the action horror game "Biohazard 5," known as "Resident Evil 5" outside Japan.

The company also said its business profits increased by 11.4 percent to 14.6 billion yen, growing for three consecutive terms, and its net profits rose by 3.3 percent to 8 billion yen, increasing for two straight terms.

Biohazard 5 and fighting game "Street Fighter IV" sold roughly 4.4 million units and about 2.5 million units, respectively, in Japan, the United States and Europe.

(Mainichi Japan) May 9, 2009


U.S. President Barack Obama said in a speech in Prague on April 5 that the United States has a moral responsibility to act as a nuclear power and as the only nuclear power to have used a nuclear weapon. His remarks, which can be interpreted as representing a major change in U.S. policy, have raised hopes among those who experienced the atomic bombings of Hiroshima and Nagasaki.

Sunao Tsuboi, president of the Hiroshima Prefectural Confederation of A-Bomb Sufferers Organizations who became 84 on Tuesday, is one of them. "The word, 'hope,' is going back and forth in my brain," he said.

Since the average age of atomic bomb survivors is over 75, there is not much time left for us to listen to their experiences directly. President Obama is urged to visit Hiroshima and Nagasaki and listen to what A-bomb survivors have to say. I believe it will be the first step toward fulfilling what he calls "moral responsibility."

I was involved in the "Hibakusha" ("A-bombing survivors") series, in which about 20 Mainichi Shimbun reporters periodically interview A-bomb survivors and report on their current situations, over a two-year period until March this year as a staff writer at the Hiroshima Bureau. I interviewed Tsuboi in the series.

Tsuboi suffered serious burns from the atomic bombing on a street in Hiroshima about 1.2 kilometers away from Ground Zero at the age of 20, and remained unconscious for about 40 days. There remain traces of burns on his forehead and ears. After the war, he suffered anemia, colon cancer and prostate cancer, and he regularly takes an anti-angina drug. While working as a junior high school mathematics teacher, he dedicated himself to a campaign to rid the world of nuclear weapons.

When I began to interview him, I focused only on his role as the leader of an organization of A-bomb survivors. I was overwhelmed by the energy with which he pressed forward with his activities even though he was almost as old as my own grandfather. However, I learned through my interviews with him that Tsuboi lost a beloved person in the A-bombing and faced discrimination as a hibakusha, and noticed that his forward-looking attitude and enthusiasm derive from his sad experiences.

His atomic bombing experience as a student at Hiroshima Technical College, which is now part of Hiroshima University, was beyond my imagination. More than that, the woman he had dated the previous night was killed by the atomic bombing, and a classmate he had breakfast with shortly before the attack also died. Another classmate died after suddenly suffering from an A-bomb-related disease three years later.

"The starting point of my activity is the fact that I saw those who lost their lives. I can never tolerate nuclear weapons," he says.

He was subjected to discrimination against A-bomb survivors. A relative of his fiancee strongly opposed their marriage, saying, "Hibakusha die quickly. You can't tell what kind of child would be born." He even thought of running away to marry his fiancee.

As a militarist boy, Tsuboi harbored a grudge against the Untied States. Over about 10 years after Japan's defeat in the war, he had thought that "Japan should rearm itself and defeat the United States. We must seek revenge."

However, while participating in an anti-nuclear campaign, he transformed his grudge against the U.S. into energy to prevent anybody from falling victim to nuclear attacks.

After Obama took office, he sent a letter to the U.S. president with members of other organizations of A-bomb survivors, asking him to visit Hiroshima.

"We still have a long way to go before the realization of a nuclear-free world. There are many things to do and I need more time. I can't die yet," Tsuboi says.

The United States had long justified its atomic bombings of Hiroshima and Nagasaki on the grounds that they helped end the war earlier and saved many lives.

While appreciating the "moral responsibility" that President Obama mentioned in his Prague speech as a major shift in U.S. policy, after witnessing the nuclear age for 64 years, Tsuboi is not optimistic about the possibility of nuclear disarmament.

Obama's speech reportedly stirred criticism in the United States. "There are opponents and things won't progress as the president says. I'd like to closely watch any developments," Tsuboi says.

What Tsuboi wants to convey to Obama is probably not only the tragedy of atomic bombings but also the plight of A-bomb survivors and the feelings they have shown to the world by overcoming their troubles.

Some A-bomb survivors intend to demand Obama, as the U.S. leader, offer an apology for the atomic bombings if he visits Japan, but Tsuboi said it does not matter if Obama expresses an apology or not. "The future is more important than the responsibility for the past. I think the president feels a sense of responsibility for realizing a nuclear-free world in the future."

I'd like to expect much from Obama's use of the phrase, "moral responsibility." All those who insist that nuclear arms are necessary would feel shocked if they hear A-bomb survivors talk about their experiences.

If the president has a chance to listen to what Tsuboi and other A-bomb survivors say about their experiences, I believe he will feel the weight of their words, and use the opportunity to take a step toward realizing a nuclear-free world to fulfill his moral responsibilities.

Former U.S. President Jimmy Carter visited Hiroshima in 1984, and former Soviet President Mikhail Gorbachev went to Nagasaki in 1991. Many other dignitaries have visited the world's only atomic-bombed cities. However, no U.S. president has ever visited these cities while they were in office.

I earnestly hope that President Obama will meet with Tsuboi and other A-bomb survivors and that the experience will help realize a nuclear-free world. (By Mizuki Osawa, Hanshin Bureau)

(Mainichi Japan) May 5, 2009


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