Mori denies resignation plan

TOKYO, Japan -- Japanese Prime Minister Yoshiro Mori has denied ever saying that he intends to resign.

The denial comes a day after members of his Liberal Democratic Party (LDP) indicated that he planned to step down in April.

Opposition lawmakers are now demanding he step down immediately saying his reported intention to do so has already created a political vacuum.

RESOURCE Mori's decline parallels Nikkei losses

A member of Mori's Liberal Democratic Party told the media Saturday the prime minister, in a closed-door meeting with party leaders, indicated he would hold early party elections and would step down after the parliament passes the 2001 budget in April.

However, even though Japanese media had reported he made a "de facto resignation" by announcing early elections, Mori said, that did not mean he planned to step down.

"Neither I nor the five LDP executives understood this as a statement of my intention to resign," Mori told a budget panel in parliament's Upper House Monday.

He added that his first priority was to enact the budget for the fiscal year beginning April 1.

Mori has survived two no-confidence motions in the past five months although his approval rating has continued to plummet, reaching single figures in recent polls and making him the least popular Japanese leader since World War II.

Political vacuum

The opposition has said it plans to step up efforts to pressure Mori to resign, saying they would submit a censure motion against him.

Polls have shown Mori is now the least popular Japanese leader since World War II

"The people want him to step down immediately," said Giichi Tsunoda, of the Democrats.

"If Mori intends to stay on until late next month as reported, that would create a political vacuum," said Shinichi Sakamoto, of the Social Democrats, another leading opposition group.

Unlike a no-confidence vote, the censure would be non-binding and would simply reflect the discontented sentiment in the upper house.

The ruling LDP and its two smaller coalition partners have been under intense pressure to replace Mori, to improve their chances of winning in Upper House elections in July.

The opposition has criticized the prime minister for not disclosing his supposed resignation plans to the public.

"The nation simply can't understand why this is happening behind closed doors," said Yasuko Takemura, of the Democratic Party, the largest opposition group.

The secrecy of Saturday's meeting recalled the time LDP leaders met to find a replacement of former Prime Minister Keizo Obuchi whose death from a stroke last year was withheld from the media.

The reported agreement was widely viewed as a face-saving compromise allowing the increasingly unpopular prime minister to stay in office a few more weeks while paving the way for him to resign.

"I did not tell the party leaders I would resign," Mori said. "I want to listen carefully to the voices within the party and outside of it, and make my decision."

Losing face

Analysts have said finding a rapid replacement for Mori would avoid confusion in negotiations with the presidents of the United States and Russia later this month.

Former Prime Minister Ryutaro Hashimoto and former Health Minister Junichiro Koizumi are emerging as possible successors to Mori.

U.S. President George W. Bush has agreed to meet with Mori on March 19, with discussions likely to be dominated by the ongoing probe into the U.S. submarine collision with a Japanese fishing vessel last month.

After 11 months in office, Mori has been blamed for the lack of economic reform. The stock market recently plunged to a 15-year low and financial institutions are burdened with bad debts.

Mori's popularity rating has plunged to less than 10 percent, due to a series of political gaffes and blunders.

Last month Mori was widely criticized for choosing to finish a game of golf rather than return to his office after learning of the submarine collision.

Alleged links to a bribery scandal involving an LDP powerbroker who helped elevate him to office and statements reviving memories of Japan's militaristic past have not helped his public image.

Speculation about Mori's resignation also comes at a time when the Japanese economy appears to be slipping back into recession.

Data released Monday showed the world's second largest economy grew 0.8 percent in the last three months of the year 2000, allowing Japan to narrowly avoid a relapse into recession.

However, many economists viewed the rise as a temporary blip and said the modest expansion probably ground to a halt in January.

The Associated Press & Reuters contributed to this report.

Japan welcomes Mori's signal to resign
March 10, 2001
Mori's resignation tipped to come soon
March 9, 2001
Japan's finances 'close to collapse'
March 8, 2001

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