Politic-Economic-Society-Tech

Japan's PM tells Chretien he's pinning hopes on elections to improve economy 

Prime Minister Junichiro Koizumi said Friday that the success of his ambitious plans to pull Japan's economy toward recovery depends on how well his party does in parliamentary elections later this month. 

Koizumi, speaking in one-on-one talks with Prime Minister Jean Chretien before the opening of this year's summit of the Group of Eight industrialized countries, said this year's international meeting comes amid campaigns for half the seats in Japan's upper house. 

The elections are seen as a crucial test of Koizumi, who assumed office in April. Although Koizumi has enjoyed record-high approval ratings, his reform plans have found little support within his ruling Liberal Democratic Party. A victory at the polls, however, would likely strengthen his position. 

"We are right in the middle of the election battle," Koizumi said. "Whether my reforms will be a success or not depends on the outcome of the July 29 vote." 

Koizumi has called for cuts in government spending, the privatization of Japan's huge postal savings system and is pushing banks to clear huge bad loans. 

He had acknowledged the reforms could cause some "pain" in the near term but stresses they will benefit the sagging economy in the years to come. Many fear, however, that the reforms could increase joblessness - now near five per cent, a record high - and further stifle growth. 

Despite a full agenda of issues to discuss, Koizumi has opted to cut the number of one-on-ones with his fellow leaders at the G-8 summit, which is his first. 

Chretien was his first bilateral partner. They spoke for nearly 50 minutes, almost twice as long as expected. 

Koizumi was to hold the remainder of his bilaterals Saturday, but was not scheduled to meet with U.S. President George W. Bush, British Prime Minister Tony Blair or French President Jacques Chirac. 

He met those three leaders recently on a tour of the United States and Europe. 

The omission of those key countries from Koizumi's schedule here meant he will have less time to try to persuade the United States to accept an international treaty on greenhouse gas emissions that has Washington at odds with European leaders. 

The treaty to reduce emissions of the noxious gasses believed to be a factor in global warming was crafted in Japan's ancient capital of Kyoto in 1997. Koizumi has said Japan will do "whatever it can" to see that it is ratified but has waffled on how far he would be willing to push the United States. 

Japanese officials acknowledged that there were no urgent issues to be discussed in the bilaterals with Canada, Italy and Germany, as relations with those countries are generally smooth. 

However, the remaining meeting, with Russian President Vladimir Putin, was expected to focus on a territorial dispute that has long clouded Tokyo's relations with Moscow. 

Both countries claim several small islands between Japan's northern shores and the Russian Far East coast. The islands were occupied by the Soviets in the closing days of the Second World War, and the dispute over them has kept Japan and Russia from signing a format treaty to end that war. 

Though little progress was likely, Koizumi said before the summit that he hoped his meeting with Putin would help create an atmosphere in which the two sides could seek a compromise. 


source: The Canadian Press, 20.07.2001