Tue, Sep 28, 2004 - Page 5 News List

Koizumi reshuffles Cabinet, ruling party leadership

AP , TOKYO

Japanese Prime Minister Juni-chiro Koizumi reshuffled his Cabinet and the ruling party leadership yesterday in hopes of solidifying his flagging political power and boosting his ability to carry out reforms.

Koizumi replaced Yoriko Kawaguchi as foreign minister, but retained his financial team, keeping Finance Minister Sadakazu Tanigaki, Trade Minister Shoichi Nakagawa and Economy Minister Heizo Takenaka in their posts.

Nobutaka Machimura, a former education minister, will succeed Kawaguchi, government spokesman Hiroyuki Hosoda said.

In one of the most closely watched appointments, Koizumi appointed Takenaka to also be minister responsible for privatizing the postal service, a centerpiece of Koizumi's reform platform.

Koizumi has been flagging in the polls and has faced opposition within his Liberal Democratic Party since the rival Democrats posted strong gains in upper house elections in July.

The Cabinet reshuffle -- the first in a year -- was aimed at uniting his divided party behind his reforms program.

"There is no doubt that we placed an emphasis on privatizing the postal service," Hosoda said at a news conference announcing the new lineup.

Other ministers voiced support for the privatization plan, with Finance Minister Tanigaki noting the government had to put a stop to how money from postal savings deposits underwrites public spending projects.

"We must fix the situation of so much money flowing into public coffers," Tanigaki said. "I plan do my part as finance minister."

Koizumi also chose a new leadership for the LDP.

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