1. US and Japan Diplomatic Relations and Economic Development Forecast in 2010 January 27, 2010 Pacific Dreams, Inc. 25260 SW Parkway Avenue, Suite D Wilsonville, OR 97070

4. < Futenma Base Issues> ❖ Futenma Base is located in the middle of downtown Ginowan-city in Okinawa Island and due to its location is the most dangerous US air base in the world ❖ People in Okinawa strongly desire to transfer all the US bases outside of Okinawa ❖ Previously LDP Prime Ministers have held discussions and have come to an agreement with US to move Futenma Base to another location in Okinawa ❖ One of DJP’s campaign pledges at the Lower House election was to review US Military Base location in Japan

5. <Futenma Base Transfer Issues> ❖ Transfer to Camp Schwab in Henoko Coastline (Nago-city) But, Henoko Coastline is Jugong’s natural habitat ❖ The US military has a long-term plan to move Futenma Base to Henoko, the plan to be implemented by 2014 ❖ Prime Minister Yukio Hatoyama is more concerned about keeping the coalition administration’s agreement than the future impact of moving Futenma Base to Henoko ❖ “US-Japan alliance should not be held hostage by Futenma” (Richard Armitage, US Deputy Secretary of State under Bush Administration)

6. <US-Japan Alliance Concerns> ❖ (Revised) US-Japan Security Treaty began in 1960 ❖ Agreement that US military takes charge in an emergency situation, but Japan pays the bill during peacetimes ❖ Concerns and arguments resurface in the US Congress about the “Japanese Defense Free-ride” ❖ After WW II political leaders paid exceptional effort and attention to the treaty regardless of the economic friction ❖ Hatoyama administration should give extra attention and develop a more mature and deeper alliance with US, while at the same time taking into consideration the domestic constituents’ (in Okinawa) request for the US to relocate elsewhere

10. US and Japan Diplomatic Relations and Economic Development Forecast in 2010 Thank You! Ken Sakai [email_address] www.pacificdreams.org