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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Enormity of Haiti quake disaster clear from the sky 15 Jan 2010 UPDATE 1-US takes control of Haiti airport to speed aid 15 Jan 2010 Angry Haitians block roads with corpses: witness 14 Jan 2010 Haiti says 200,000 may be dead, tensions rise | Video 1:48am EST Haiti aid groups ask companies for cash, not goods | Video 14 Jan 2010 UPDATE 1-US takes control of Haiti airport to speed aid 15 Jan 2010 Angry Haitians block roads with corpses: witness 14 Jan 2010 Icesave foes confident as referendum nears 12 Jan 2010 UPDATE 1-U.S. texting raises $11 million for Haiti 15 Jan 2010 U.S. taking closer look at bisphenol A in plastics 15 Jan 2010 Japan's Ozawa vows to stay after aides arrested Isabel Reynolds TOKYO Sat Jan 16, 2010 1:28am EST Related News Q+A: Japan ruling party No.2 Ozawa: Why does he matter? 1:20am EST TOKYO (Reuters) - The Japanese ruling party's number two, Ichiro Ozawa, said on Saturday he would not resign, media reported, after the arrest of three aides over a funding scandal that may hit government support ahead of a key mid-year election. World | Japan Ozawa, widely seen as the real power in the ruling Democratic Party, told a meeting of regional assembly members he would stay in his post, media said, while Prime Minister Yukio Hatoyama said he supported the decision. "He told me he wanted to continue to work hard in his post and I have faith in that," Hatoyama told reporters following a meeting with Ozawa. The veteran Ozawa has repeatedly denied any intentional wrongdoing, but apologized for the fuss, domestic media said. "I may have caused misunderstanding, but I have done nothing to be ashamed of," Kyodo news agency quoted him as telling the assembly members. Media said Ozawa announced he would hand over his duties temporarily to another party executive, but Hatoyama was later reported as denying any such suspension from duty. Analysts and media say pressure on Ozawa to step down is rising, adding to the woes of Hatoyama's government ahead of an election for parliament's upper house, where his Democratic Party relies on an awkward coalition with two tiny parties to pass bills. A poor performance in this year's election could result in stalemate between the two houses of parliament and even mean a return to the policy paralysis that has afflicted previous governments. The Democrats swept to power in the August election promising to reduce bureaucrats' grip on policy, reorient spending toward consumers, and steer a diplomatic course less dependent on security ally Washington. Graphic on Japan voter support: r.reuters.com/myv63g Hatoyama faces his own funding scandal and opposition lawmakers have vowed to attack the two leaders over corruption in the new session of parliament, potentially delaying debate on the budget. Support for Hatoyama's government has slid to just over 50 percent, compared with levels over 70 percent when he took office in September. But many analysts say the main opposition Liberal Democratic Party, itself often racked by scandal during its half-century of almost continuous rule, may not benefit much from a fall in support for the government. TIMING IS CRUCIAL In the nearer term, the scandal has erupted just ahead of Monday's opening of a new session of parliament, during which Hatoyama must quickly pass two budget bills aimed at bolstering the ailing economy. Data released on Thursday showed machinery orders had slumped to a record low in November, adding to government fears of a return to recession that would lead to calls for more spending by the deeply indebted government. One analyst said Ozawa would have to step down. "There is nothing for him to do now but resign," said political commentator Minoru Morita, adding that the extent of the damage to the government would depend on the timing. "If he does it quickly, before parliament starts, that will keep damage to a minimum." Morita said. Prosecutors arrested two former aides to Ozawa late on Friday, one a serving member of parliament, and a current secretary on Saturday in an investigation into the source of cash Ozawa's funding group used to buy a plot of land in Tokyo. Media quoted a lawyer for the arrested lawmaker as saying the funds were an inheritance from Ozawa's father that he had kept in cash at his home. ($1=90.74 Yen) (Editing by Bill Tarrant) World Japan More from Reuters Cadbury investors look for higher Kraft bid LONDON (Reuters) - Some of Cadbury's biggest shareholders, led by Legal & General, continued to reject Kraft Foods' 10.5 billion pound ($17.2 billion) bid and will look for an increased offer over the next four days. U.S. accuses J&J of kickback scheme with Omnicare Wizards' Gilbert Arenas pleads guilty in gun case Defendant in Galleon case may be near plea Democrats close in on healthcare agreement U.S. takes control of Haiti airport to speed aid » More Top News Is sexting pornography? Should teens who send naked pictures of themselves to other teens be charged with child pornography? Full Article Sexting "unfriended" on word list Few teens participate in sexting Technology Best of the week A look at Reuters' top photos from the past week. Slideshow Strange and unusual Least free places in the world PICTURES © 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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