<P><FONT size=5>Citigroup-¸£Ì￵·òÄÚ¸óµÄÖйú¾­¼ÃÕþ²ß09.25</FONT></P>
<P><FONT size=5>25 September 2007 ª¥ 6 pages</FONT></P>
<P><FONT size=5>Equity strategy</FONT></P>
<P><FONT size=5>China, environment plays under a Fukuda administration</FONT></P>
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<P> Hopes for Fukuda government higher than expected ¡ª Yasuo Fukuda¡¯s<BR>reputation could be greatly enhanced if he pushes forward a quick<BR>improvement in relations with China and ensures the success of the Lake Toya<BR>G8 Summit, which will be chaired by Japan and will focus on the important<BR>global issue of environmental degradation.<BR> Fukuda cabinet approval above expectations? ¡ª An opinion survey by Asahi<BR>Shimbun showed that 53% of respondents support Mr. Fukuda and 21%<BR>support Taro Aso, while the Yomiuri Shimbun reported that 58% support Mr.<BR>Fukuda and 22% support Mr. Aso. We expect Mr. Fukuda to be elected<BR>president of the LDP at the September 23 election and be named head of<BR>government by the Diet on September 25.<BR> Towards improving ties with China and other Asian countries ¡ª On visits to<BR>Yasukuni Shrine, Mr. Fukuda said that it is not necessary to take actions that<BR>others resent and that the issue needed bigger picture consideration. He said<BR>that his vision for his administration is to engage in diplomacy based on Japan<BR>being a part of Asia, and establishing an East Asian community.<BR> Promotion of environmental policies ¡ª Mr. Fukuda stated that he would strive<BR>to ensure a successful Lake Toya Summit, with international contributions on<BR>environmental technology and employee education. Japan offering<BR>environmental technology to China following improved ties would be a big step<BR>toward the summit¡¯s success.</P>