Japan's new premier sets economy as top goal

Japan's new prime minister set reviving the country's sagging economy as his top priority in his first address to Parliament today and pledged not to backslide on market reforms.

Prime Minister Yoshiro Mori, elected by Parliament on Wednesday to succeed the ailing Keizo Obuchi, also vowed to attend to the country's high unemployment rate and bolster Japan's global standing.

But the economy was his main concern. Mori said his government aimed to make the transition from an economy dependent on a massive public spending to a self-sustaining recovery.

"There are signs of recovery ... and the economy is looking brighter, so we should take this opportunity," Mori told Parliament, calling for a "rebirth" of Japan. "I intend to do my utmost to place the economy firmly on the path to real recovery."

The fiscal spending campaign under Obuchi, who took office in July 1998, has put the economy on the verge of recovery, but trouble spots remain. Unemployment is high and growth has been weak.

Mori, the former second-in-command with the ruling Liberal Democratic Party, was widely expected to be a caretaker rather than a long-term leader. A newspaper poll published Friday showed public opinion split on whether he would be effective.

Mori was installed Wednesday as a replacement for Obuchi, who suffered a stroke and fell into a coma on Sunday. Mori strove for continuity with Obuchi's government, reappointing all his predecessor's Cabinet members.

The new prime minister also said he would not slacken the pace on painful restructuring that gained speed under Obuchi. The government is gradually opening up the economy to greater competition, and companies are downsizing staff.

"I am ready to share the pain with the Japanese people," Mori told lawmakers.

Mori also addressed foreign policy, an area where he does not have much experience, and said he hoped to strengthen ties with Asia. He has never served as foreign or finance minister, two posts considered stepping stones to the premiership.

On Thursday, Mori had conversations with U.S. President Bill Clinton and French President Jacques Chirac. He has stated the hosting of the G-8 summit of top industrialized countries and Russia in July as a top agenda item.

Mori, however, did not speak about one of the most burning issues to have emerged since he assumed office: elections.

The government is required to hold elections by October, but the opposition has been pushing for a quicker vote. Mori is under mounting pressure to hold a poll to test the mandate of his government.

But the prime minister is trying to hold off until after the G-8 summit, and he has said the economy is more important now than elections.

He stuck to that this morning.

"We have until Oct. 19th," he said when asked about elections. "I don't have time at all to think about that."

Public opinion appears to be split on Mori's prospects. A poll by the Yomiuri newspaper released Friday showed 49 percent of respondents had hopes Mori would be effective, while 45 percent said they had no expectations for him.

The telephone survey of 1,500 voters, conducted on Wednesday and Thursday, also showed support for the ruling LDP at 39 percent - 10 percentage points higher than a Yomiuri poll made before Obuchi fell ill.

The poll had no margin of error.