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Japanese prime minister announces intention to resign

By Joseph Coleman, Associated Press, 4/6/2001 09:03

TOKYO (AP) Prime Minister Yoshiro Mori told his Cabinet on Friday that he would step down, signaling the end of one of Japan's most unpopular governments since the end of World War II.

Mori, under fire for months over verbal gaffes and missteps, had been long expected to quit. The ruling Liberal Democratic Party is planning to hold a leadership election later this month to choose a successor.

But Friday's announcement did not solve Japan's mounting problems. A long-awaited recovery from the lengthy economic downturn has stalled, and banks are still crippled by a decade-long debt crisis.

Mori hinted at the troubles Japan faces in his statement, his first public announcement of an intention to step down.

''I made up my mind to resign because I think it is necessary to tackle mounting issues both at home and abroad under a new administration,'' Chief Cabinet Secretary Yasuo Fukuda quoted Mori as telling the Cabinet.

The apparent front-runner to replace Mori is former Prime Minister Ryutaro Hashimoto, who served from 1996 to 1998. Hashimoto heads the LDP's largest faction and reportedly has the support of two other factions.

Hashimoto said he was flattered, but stopped short of declaring his candidacy. ''As I've said before, it's an honor for a politician,'' he told reporters.

Another man often mentioned as a possible candidate, reform-minded Junichiro Koizumi, jumped into the running first, giving the strongest indication yet that he intends to seek the premiership.

''You have to fight when you have to fight,'' Koizumi said. ''It would be cowardly to avoid the contest out of a fear of losing.''

The former health minister is popular with the public, but analysts see his chances as slim because he has provoked distrust within the party with his calls to privatize the postal service.

There is general agreement in Japan that Mori leaves the country hungering for leadership, and his missteps have severely damaged the LDP, which has ruled nearly uninterrupted since 1955.

''Japan needs economic reforms no matter who the prime minister is,'' said Masumi Ishikawa, a political expert at Obirin University in Tokyo. ''The year 2001 will be the year that made it clear that the LDP is finally falling apart.''

The Cabinet on Friday announced an emergency economic package that set a two-year deadline for banks to dispose of their riskiest bad loans. The debt load by one estimate is $102 billion.

Mori's announcement was likely to be met with relief among LDP rank-and-file, who had widely feared that public distaste for the premier would hurt the party in upper house elections scheduled for July.

The biggest of the LDP's two coalition partners, the Komeito, was also relieved.

''I think it's too bad, but it had to be done,'' Komeito leader Takenori Kanzaki said. ''The ruling parties have to be united ... to avoid a political vacuum for even one day.''

Mori took office in April 2000 after Prime Minister Keizo Obuchi suffered a fatal stroke. Immediately, his selection in a closed-door meeting of LDP bigwigs came under heavy criticism. He was widely assailed as a policy lightweight.

He has also been attacked for comments recalling Japan's wartime emperor-worship and militarism, and for his decision to continue a round of golf after being told of the Feb. 9 collision of a U.S. submarine and a fishing vessel that killed nine Japanese.

His public support ratings have plunged below 10 percent, making him the second-most unpopular prime minister in Japan since World War II, after Prime Minister Noboru Takeshita, who resigned in 1989.

The LDP began preparations this week to hold elections on April 24 for a new party president. The LDP president is almost guaranteed to become prime minister because of the party's domination of Parliament.

The date still needs to be approved by other party officials and a final decision was scheduled for next Tuesday.

Despite his unpopularity, finding a replacement for Mori has been difficult.

One factor perhaps holding candidates back is the prospect of the LDP faring badly at the polls in July. In that case, whoever is prime minister may be forced to resign to take responsibility for the poor showing.

-- Anonymous, April 06, 2001