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Monday, 25 January 2010 - Japan PM vows U.S. base decision by May, scandal weighs |
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    Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared SEC mulled national security status for AIG details 24 Jan 2010 Lebanon says Ethiopian plane crash site located 24 Jan 2010 UPDATE 2-'Avatar' replaces 'Titanic' in record books 24 Jan 2010 WRAPUP 2-China steps up defence of Internet controls 1:28am EST Ethiopian plane crashes in sea off Beirut, bodies found 2:15am EST SEC mulled national security status for AIG details 24 Jan 2010 Google denies leaving China, seeks negotiations 17 Jan 2010 Factbox: Pentagon budget seen benefiting Boeing, GD 24 Jan 2010 Human "bed-warmers" at Holiday Inn 21 Jan 2010 UPDATE 1-TCW Group to liquidate $500 mln fund 04 Jan 2010 Japan PM vows U.S. base decision by May, scandal weighs Chisa Fujioka TOKYO Mon Jan 25, 2010 2:23am EST Related News Japan PM sticks to end-May decision on U.S. base Sun, Jan 24 2010 Japan PM's party clouded by scandal despite denial Sat, Jan 23 2010 Japan ruling party No. 2 denies scandal Sat, Jan 23 2010 Support for Japan ruling party erodes amid scandal Fri, Jan 22 2010 Scenarios: Japan PM in pinch over ruling party kingpin scandal Fri, Jan 22 2010 TOKYO (Reuters) - Japan's leader on Monday promised not to delay beyond May a decision on the fate of a U.S. base, as a feud with Washington over the nagging issue threatens to further erode voter support already hurt by a funding scandal. World  |  Japan Prime Minister Yukio Hatoyama seemed to have even less room to maneuver in the dispute over the Marine base in Okinawa, southern Japan, after a candidate who opposes an existing plan to relocate it won a local election on Sunday. The vote came a day after prosecutors questioned the No.2 in his Democratic Party over the funding scandal which is clouding the outlook for the annual budget from April 1, aimed at bolstering a fragile economic recovery. Although Japanese media said an extra budget for the current year to March 31 was likely to be enacted given the risk of public backlash over policy delays, opposition parties have called for more debate on the scandal in parliament. Concerns over the deliberations for the 2010/11 budget could weigh on Japanese stocks in the short term, although there has been little impact so far. Additionally, it could also cloud voter support for Hatoyama ahead of a mid-year election for parliament's upper house. The Democrats need to win an outright majority in the upper house vote to reduce reliance on two small but vocal coalition partners who could add pressure for more spending and increase an already huge public debt, pushing up government bond yields. END-MAY DEADLINE Hatoyama brushed off concerns he could keep dithering over Tokyo's dispute with Washington over the Futenma base, which has bred voter doubts about his four month-old government's ability to manage relations with its top security ally. "The government has promised to start from scratch and to be responsible in reaching a conclusion on this issue by the end of May," Hatoyama told reporters. "We will definitely fulfill that." Media reports have said Hatoyama may visit the United States around May, although no official decision has been made. A weekend poll by broadcaster TBS showed the government's approval rate at 46.4 percent, down 6.6 points from earlier this month and below the disapproval rate of 53.1 percent. Hatoyama faces an increasingly tough decision on the airbase, which under a 2006 deal with Washington was to be relocated to the city of Nago in a less crowded part of the southern island. Washington wants Japan to implement the plan. But Hatoyama is under pressure from his tiny coalition allies to stick to a pledge to move Futenma off the island, where many residents feel they shoulder an unfair share of U.S. forces. Given Hatoyama's growing headaches, the 2010/11 budget, if not the extra budget as well, could become a political football, said Tsuneo Watanabe, a senior fellow at the Tokyo Foundation think tank. The key could be the fate of the Democrats' kingpin Ichiro Ozawa, who Hatoyama has stood by despite his funding scandal because his undisputed electioneering skills are seen as important to the party winning the upper house election. Ozawa has denied any wrongdoing in the scandal that has led to the arrests of three current and former aides on suspicion of misreporting political donations. "The real battle will be concerning the annual budget," Watanabe said, adding that Ozawa might decide to step down from his No.2 post while keeping actual control of the campaign in exchange for smooth passage of the budget. Watanabe also said Hatoyama might eventually have to step down over the Futenma dispute, especially if he opts for the original plan to keep Washington happy. Despite the anti-base mayoral candidate's victory, the vote was extremely close, reflecting divided local opinion. (Additional reporting by Linda Sieg, Yoko Nishikawa; Editing by Paul Tait) World Japan More from Reuters China steps up defense of Internet controls BEIJING (Reuters) - China widened its attack against U.S. criticisms of Internet censorship on Monday, raising the stakes in a dispute that has put Google in the middle of a political quarrel between the two global powers. | Video Asian stocks slide but recover from lows | Video Bill Gates worries climate money robs health aid Myanmar says Suu Kyi to be freed in November: witnesses After 2008 scare, China finds more toxic milk products Nikkei hits four-week closing low, earnings in focus » More Top News Our biggest Davos team ever A Reuters multimedia team will be in Davos providing insight and analysis on topics including the global economic recovery, China, green business and the future of finance.  Full Article  IMF chief sees double-dip risk Video: Tough choices loom Davos 2010 THE WEEK AHEAD: Another fine headwind ... The banks shakeup added a huge dollop of uncertainty to the markets, and the coming week will determine if it's enough to give investors pause.  Full Article  Is this the beginning of the correction? U.S. Markets © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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