Japan PM contenders face off on economy

In this story: Down to the wire No clear majority RELATED STORIES, SITES

TOKYO, Japan -- An ex-prime minister and a renowned reformer have faced off with two other contenders in Japan's prime ministerial race.

The four contenders for the presidency of the dominant Liberal Democratic Party (LDP) focused on economic policies as they outlined their platforms in speeches to colleagues.

The frontrunner, former prime minister Ryutaro Hashimoto, presented an impassioned performance as he spoke alongside eccentric reformist Junichiro Koizumi, Economics Minister Taro Aso and outspoken LDP policy chief Shizuka Kamei.

"Give me 200 days, that's all I want," pleaded Hashimoto, who stands out with his slicked-back hair, rakish suits and ever-present cigarette and is bidding to become only the second prime minister since the war to regain the top job.

"If I am told at the end of that time that I am no longer needed, then I will withdraw from the scene," he said. "But if I am needed, I will continue."

Hashimoto's 1997 decision as prime minister to raise taxes and cut spending was widely blamed for tipping the economy into recession.

This in turn set the stage for an abysmal LDP performance in a 1998 Upper House election, a defeat that forced him to resign.

Down to the wire

The LDP's 346 lawmakers will cast their ballots on April 24 with an additional 141 votes by LDP chapters in Japan's 47 prefectures.

"Unlike elections in previous years, we probably truly won't know what will happen until the actual vote takes place," said political analyst Harumi Arima.

"Koizumi is extremely popular among the local LDP chapters and things could really change if they vote heavily for him."

Koizumi stands out as the only one putting the priority on structural economic reform. "No structural reforms, no economic recovery," the 59-year-old Koizumi said.

Koizumi said he wanted to address the debt problem, starting by limiting the issuance of new government bonds to around current levels.

The LDP's conservative police chief, Shizuka Kamei, differentiated himself by stressing his commitment to the old, pump-priming pork-barrel politics of the past decade, while the tone of his three rivals appeared to favor change.

"Regrettably, we are entering a situation where we have to consider an extra-budget."

Taro Aso had warned earlier in the day that an extra budget could be needed this business year to prevent a slide back into recession.

No clear majority

It is believed no candidate may win a majority, forcing a head-to-head run-off between the two leaders.

Hashimoto commands the support of his 101-strong faction, the largest in the LDP, and another faction with 43 members is expected to fall in behind the former prime minister.

Koizumi can expect support from three factions, whose members total 98, plus a large portion of the 141 local chapter votes.

Hashimoto could gain a crucial edge in the end due not only to his faction's strength but its influence, which enables it to promise future favors in return for support -- crucial in the faction system that was created from money-based alliances.

But regardless of who runs, Upper House elections in July are casting a shadow over the race and -- if the LDP fares as badly as many expect -- could force the winner to resign only three months into the job.

Reuters contributed to this report.

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