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    Japan
     Sep 27, 2007
Page 2 of 2
Fukuda launches his 'do or die' cabinet

By Hisane Masaki

strong public anger over the government's pension records-keeping fiasco and a series of gaffes and political funds-related scandals involving some of Abe's ministers.

The structural reform drive ignited by Koizumi and basically inherited by Abe will very likely lose momentum. While vowing to continue with the drive, Fukuda has said his administration will pay more attention to the issue of social inequalities, including



that between richer urban and poorer rural areas.

Although Fukuda has stressed the need for continued fiscal discipline as the nation's fiscal condition is the worst among major industrial countries, he is expected to face strong pressure from within the LDP-led coalition for more public works and other spending to get back support in rural areas.

There are strong concerns within the party about a possible loss of power in the next general election for the House of Representatives, which must be held by September 2009 but is very likely to be held much earlier.

Most experts agree - and even many voters feel - that a hike in the 5% consumption tax will become inevitable in the not-so-distant future to finance rising pension and other social-security costs amid the rapid aging of the population and to stem an even further rise in already huge government debts. But serious discussions on the issue are very likely to be shelved, at least until after the next general election.

Fukuda, known for his dovish diplomatic stance, has vowed to promote amicable relations with Japan's Asian neighbors while maintaining its pro-US foreign policy. Unlike Abe, Fukuda was critical of Koizumi's repeated visits to Yasukuni Shrine, which drew angry responses from China and South Korea. Fukuda has said he will not go to the controversial shrine to avoid upsetting Asian neighbors that suffered from Japanese wartime aggressions.

Unlike Abe, an anti-North Korea hardliner, Fukuda has also called for a flexible stance toward the Stalinist Asian neighbor while maintaining the "dialogue and pressure" approach to resolve the issue of North Korea's past abductions of Japanese nationals. "We must devise some means to convey to the other side our desire and readiness to conduct negotiations," Fukuda said recently.

The first order of business for the Fukuda administration is to extend the mission of the Maritime Self-Defense Force (MSDF) to refuel vessels in the Indian Ocean as part of efforts to support the US-led coalition's "war against terrorism" in Afghanistan.

At issue is the Anti-Terrorism Special Measures Law enacted in the weeks after the September 11, 2001, terrorist attacks in New York City and Arlington, Virginia. Under the law, MSDF vessels have been deployed in the Indian Ocean since November 2001 to refuel coalition warships. The DPJ has vowed to block another extension of the law by flexing its newly acquired muscles in the Upper House.

It now appears almost certain that the refueling mission will be terminated, at least temporarily, when the law expires on November 1. The Fukuda administration plans to submit a bill to the current extraordinary Diet session to establish a new law enabling the refueling mission. "The mission is extremely beneficial to the international community ... and I'm thinking to continue it," Fukuda said.

Fukuda has won a reputation as a hard-headed politician with a knack for coordinating policies. He has expressed hope that the ruling bloc will consult with the DPJ over key policy issues, including the refueling mission in the Indian Ocean, pension-system reform and a possible consumption-tax hike. "It's imperative to negotiate with the DPJ, since they control the House of Councilors," Fukuda said on Sunday. "If the Diet keeps voting down bills, it'll cause trouble to taxpayers, and I believe the DPJ shares this concern with us."

Despite Fukuda's conciliatory overtures, however, the DPJ, emboldened by the opposition control of the Upper House, is stepping up its confrontational stance against the government and ruling parties. The new premier is expected to face difficulties in handling Diet affairs. The DPJ, determined to wrest power from the LDP-led coalition, has stepped up calls for an early general election for the House of Representatives.

Before being elected LDP president and prime minister, Fukuda hinted that if he were to take the helm of the party and government, he might dissolve the Lower House through negotiations with opposition parties. Speculation is already rife in political circles that Fukuda may be considering dissolving the Lower House next spring for an early general election in return for the opposition bloc's cooperation in having the fiscal 2008 state budget enacted in the Diet.

Hisane Masaki is a Tokyo-based journalist, commentator and scholar on international politics and economy. Masaki's e-mail address is yiu45535@nifty.com.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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