Honeymoon ends for Koizumi amid scandal and feuds

Japan's hopes of political reform dwindled further yesterday when the popularity of the Prime Minister, Junichiro Koizumi, was shown at a new low and a scandal in the country's Foreign Ministry brought further disrepute to the ruling Liberal Democratic Party.

Two months of political feuding and growing long-term unemployment have taken their toll on the formerly untouchable Mr Koizumi, despite a one-day rise of 6 per cent in Japan's troubled stock market. His approval rating has fallen to 44 per cent, an opinion poll in the Asahi newspaper reported. Until this year, his support had ranged from a peak of almost 90 per cent to a minimum of 70 per cent.

At the same time, a report by the Foreign Ministry accused Muneo Suzuki, a senior LDP politician, of bullying diplomats into awarding lucrative overseas contracts to companies in his constituency.

Yoriko Kawaguchi, the recently installed Foreign Minister, said: "The relationship between parliamentarian Suzuki and the Foreign Ministry is an unprecedented case which should never have happened. We will respond dauntlessly against unreasonable pressure from politicians."

In two months, Mr Koizumi has been transformed from one of the world's most adored politicians to a faltering leader whose political capital appears to be spent. His election to the LDP leadership in April was a political sensation, as he defeated mainstream candidates with a surge of support from the party's grass roots.

His platform was the boldest set out by a Japanese prime minister: cuts in public spending, designed to reduce Japan's debt burden, reform of the country's insolvent banks and an end to the collusive relationships between politicians, bureaucrats and businessmen. Mr Koizumi convinced the Japanese he was a new kind of political personality, and for the first six months of his government they responded to him with the kind of adoration usually reserved for pop stars.

In the monochrome world of Japanese politics, his mane-like perm, his taste in rock music and his status as an unattached divorcee were splashes of welcome colour. Posters of the preening leader sold in their hundreds of thousands; teenage girls queued to buy Koizumi dolls and Koizumi straps for their mobile phones.

The woman he appointed as Japan's first female Foreign Minister, Makiko Tanaka, was equally popular. Her sacking earlier this year marked the beginning of his decline.

Ms Tanaka was forced out by a complicated scandal connected with the conference on Afghan reconstruction held in Tokyo in January. Two Japan-ese non-government organisations complained that they had been excluded from attending the conference on the orders of an LDP bigwig named Muneo Suzuki.

Ms Tanaka confirmed this, but it was denied by Mr Suzuki and Mr Koizumi chose to resolve the dispute by sacking his Foreign Minister.

Almost immediately, he shed 20 per cent of his approval ratings. Japanese voters seemed to believe Ms Tanaka rather than her antagonist. And yesterday, to make matters worse, Mr Suzuki was officially accused of dubious practices by the Foreign Ministry.

Its report said that, as an influential party figure, he prevailed upon Foreign Ministry officials who were awarding contracts for construction on two Russian islands off Japan. During "detailed discussions", Mr Suzuki asked the diplomats to limit bidding to companies in his own constituency, a request with which they complied.

Itsu Sonobe, the judge who wrote the report, said: "The mood in the ministry was such that officials could not ignore Suzuki's intentions, and felt they had to carry out his will."

Later, Mr Suzuki denied any wrongdoing and agreed to testify under oath about his links to the affair.