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Japan PM: Reviving weak economy top priority

(Agencies)
Updated: 2009-10-26 14:43

TOKYO: Japan's new prime minister declared Monday that reviving the nation's sluggish economy is top priority for his government and stressed seeking "close and equal" ties with the US in a speech outlining his main policy goals to parliament.

Prime Minister Yukio Hatoyama, whose government swept to power in an August landslide election victory that unseated a long-ruling conservative party, said key objectives include creating new jobs, cutting public works spending, and giving cash to families with children.

Hatoyama also said he wants to seek a "close and equal" alliance with the U.S., which he described as the "cornerstone" of Japanese diplomacy. He added that he wants to "frankly" discuss a plan to realign US military bases in Japan, where 47,000 American troops are based under a security pact.

Concerns that a rift is emerging between the US and Japan have grown after Hatoyama's government has suggested it would like to make changes to a 2006 agreement to rework the US military presence in the country.

Addressing the more powerful lower house of parliament, Hatoyama promised to launch new measures to create jobs in areas such as nursing care, farming and environment by the end of the year and take steps to save small businesses from going bankrupt.

"The financial crisis has made a grave impact on the economy and employment, and the situation remains serious," he said. "Putting the Japanese economy back on recovery track and achieve sustainable growth ... is the most important task for the Hatoyama government."

He renewed his campaign promise to cut wasteful government spending and scrutinize use of taxpayers money by eliminating unnecessary public works projects. Huge dam, bridge and airport projects scattered around the country were a key part of the economic policies under the previous administrations of the Liberal Democratic Party.

Hatoyama also vowed to deal with Japan's aging, shrinking population that is adding burdens on the younger generation, and pledged to give parents cash payments for each child, make high school education free and beef up scholarships to help families and encourage women to have more children.

A major sticking point in the 2006 military realignment plan with the U.S. has been the future of a Marine airfield on the southern island of Okinawa. Under the agreement made by the previous LDP government, the Futenma airfield was to be relocated to a less crowded part of Okinawa. Some members of Hatoyama's party have said they want it moved off the island entirely.

On Friday, after meeting with senior US military officials, Foreign Minister Katsuya Okada said relocating it off was "not an option" - although he said it would be difficult to resolve the location of the new site before President Barack Obama's November 12-13 visit to Japan.