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Naoto Kan To Become Japan's Prime Minister

MALCOLM FOSTER   06/ 4/10 11:01 PM ET   AP

Kan

TOKYO — Naoto Kan, the straight-talking populist named Japan's new prime minister, faces a host of daunting tasks, from reviving the nation's stagnant economy to cutting back its ballooning national debt.

But first he must survive an urgent, make-or-break test: Win back voters disgusted by the broken promises of his predecessor, Yukio Hatoyama, by next month's upper house elections.

Decisive and down-to-earth, Kan may have just what it takes to regain support for the battered Democratic Party of Japan, analysts say.

Unlike the blue-blooded Hatoyama, Kan hails from an ordinary family and got his political start in civic activism. He's known for speaking his mind and gained popularity in the 1990s for exposing a government cover-up of HIV-tainted blood products.

"He has a chance. He's a credible new leader. Nobody doubts his reformist credentials," said Koichi Nakano, political science professor at Sophia University in Tokyo.

"But there's no real honeymoon period," Nakano said. "Even though (the election) is his first test, it will be his make-or-break test."

The Democrats swept to power just nine months ago, trouncing the long-ruling conservatives amid high hopes for change and more government accountability. But public opinion quickly soured after Hatoyama got ensnared in a political funding scandal and reneged on a campaign promise to move a key U.S. Marine base off the southern island of Okinawa.

Kan, 63, Japan's sixth prime minister in four years, is keenly aware of the challenges ahead of him.

"Our first priority is to regain the trust of the people," he told party members Friday, when he was voted into office by the more powerful lower house of parliament, receiving 313 votes out of a possible 477.

He pledged to confront problems linking "money and politics." Finance minister under Hatoyama, Kan stressed the need to spur growth and tackle deflation in the world's second-largest economy, where falling prices and stubbornly high unemployment are dragging on a feeble recovery.

Kan also called ties with Washington the "cornerstone" of Japan's foreign policy, but stressed the importance of working for "the prosperity of the Asian region."

Otherwise, Kan offered few specifics. Given the troubles that Hatoyama got into for failing to deliver on his promises, Kan is likely to proceed with caution.

"Having seen Hatoyama up close, how he dug a hole for himself, Kan realizes that cheap words are what he should be avoiding," said Nakano.

In the past, Kan has said Japan needs to raise its consumption tax from the current 5 percent to reduce the bulging deficit. But Friday he was much more circumspect, saying only he would make an announcement at a later, appropriate time.

And rather than hurriedly announce a Cabinet, Kan said he would reveal the members early next week, after which the Cabinet will be appointed by Emperor Akihito.

Kan faces plenty of prickly problems, including executing a recent agreement between Tokyo and Washington to relocate U.S. Marine Air Station Futenma, to a less-crowded part of Okinawa. Hatoyama's failure to keep a pledge to move the airfield off the island led to his downfall.

Kan said Friday he would honor that accord, but faces intense opposition from island residents who want Futenma moved off Okinawa completely. Some analysts have questioned whether the plan can actually be carried out.

"This is an extremely tough issue that I must tackle firmly and patiently," Kan said.

The White House said President Barack Obama looked forward to working with Kan.

"Japan is an important friend and ally. Our partnership is crucial to peace and prosperity in the Asia-Pacific region. The President is committed to maintaining excellent cooperation with the new Japanese government and will work closely together with Prime Minister Kan on bilateral, regional and global issues," National Security Council Spokesman Mike Hammer said in a statement.

A politician with roots in civic activism who has become a fiscal disciplinarian, Kan defies easy categorization. Observers say his political views have changed and evolved over time, making it hard to predict what kind of policies he will pursue.

In the 1970s, Kan served as campaign chief for Fusae Ichikawa, a champion of the Japanese feminist movement who was elected to upper house.

Kan himself won a lower house seat in 1980 with the now-defunct Socialist Democratic Federation, and later was part of a coalition government led by the conservative Liberal Democratic Party. In 1996, Kan joined Hatoyama and others to found what eventually became the DPJ.

As finance minister under Hatoyama, Kan spoke up for increased fiscal discipline, impressing some skeptics who had worried about his past preference for spending on social programs. He has also criticized the Bank of Japan for not doing enough to combat deflation.

Analysts and fellow lawmakers agree that his ordinary upbringing and direct communication style set him apart from the professorial Hatoyama, who was born into a wealthy, politically elite family.

"Kan brings passion to the post. He is known as 'Ira-Ira Kan,' the 'Irritable Kan' because he's got a temper. The guy cares about politics," said Jeff Kingston, director of Asian studies at Temple University in Tokyo. "I think that the voters will respond to him."

Kan also clearly tried to put distance between himself and Ichiro Ozawa, the party's powerbroker and former No. 2 who is also embroiled in a funding scandal, urging him Thursday to "keep quiet for a while." Ozawa stepped down with Hatoyama on Wednesday.

Those two resignations already appear to have given the Democrats a lift in public opinion ahead of the elections, likely July 11.

A national telephone poll conducted by The Yomiuri Shimbun, Japan's biggest newspaper, showed 29 percent support for the DPJ, up 9 points from last weekend. It didn't provide a margin of error, but with 1,090 respondents, the margin of error for this survey would be plus or minus 4 percentage points.

A bad performance in the upper house elections, where half the seats are up for grabs, would not threaten the Democrats' grip on power because they command a large lower-house majority. But heavy losses would likely force the party to woo new coalition partners to ensure smoother passage of bills – and could cost Kan his job.

"I think he can change the tide," said Muneo Suzuki, a member of the DPJ-led coalition.

Many Tokyo residents appear to be taking a wait-and-see attitude.

"I'm a little uneasy after Hatoyama's government," said Yuki Tamura, 23, who works for a manufacturing company. "I voted for the Democrats last time, and depending on how Kan does, am willing to do so again."

___

Associated Press writers Mari Yamaguchi, Jay Alabaster, Yuri Kageyama and Tomoko A. Hosaka and contributed to this report.

(This version CORRECTS SUBS graf 23 to correct that Kan was part of LDP coalition government but not member of LDP, ADDS vote tally in graf 9 and that likely date of election is July 11 in graf 28. AP Video.)

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gclafontaine
Sand is a small price to pay for sandlessness.
05:48 PM on 06/04/2010
Nothing changes in Japanese politics. Just one do-nothing puppet after another.
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08:17 AM on 06/04/2010
Japan practices adversarial trade. Today, we do not have free trade with Japan, we have one way economic war ("taisen") trade where Americans buy Japanese goods and Japan buys America. They did what was best for their country, which is what I would expect them to do.

Japan trade patterns are not bi-directional in the common sense where two countries buy each others’ exports and a happy state of affairs results. Japanese policy is to intentionally use foreign cash profits NOT TO BUY a foreign country's exportable products, but rather BUY ITS CAPITAL ASSETS like companies and real-estate, while preventing the other countries from doing the same thing in Japan.

Japan has a protected home market which serves a very important purpose to the country and the national business effort. The home market is for trying out new products, copying and improving foreign designs, getting capital (through price gouging their own populace) without fear of foreign companies entering and ruining the game.

The HUGE problem that Japan must deal with is they have become so dependent upon profits of their exports that it could literally “bring down the house” should America (and other countries) end continued acceptance of this ‘win-lose’ Japanese scenario. It is not self-sustaining. It greatly depends on all other trading “partners” to be complicit in accepting Japan’s economic “taisen” terms.

It will end because every nation MUST have its own industrial base - otherwise economic collapse is inevitable (look at Greece).
12:08 PM on 06/04/2010
Thank you for taking the time to post this obviously well-thought-out information, and educating me for free :) Your efforts are much appreciated.

Man, I love the internet.
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studana51
Old and tired
07:52 AM on 06/04/2010
Looks like Berusconi in Italy is the only elected world leader able to succesfully navigate the perils of govt.
That' knock up side of head' seemed to be the charm ..maybe it should go world-wide.
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Ramkshrestha
Welcome to Nepal - the birthplace of Buddha
05:28 AM on 06/04/2010
Why so called leaders from Nepal cannot take lesson from leaders from other countries? Even after lots of proofs to disqualify them from their posts they do not want to resign. For them they themselves are more important than the country. They are ready to ruin the country for their own selfishness. I could not see any difference between these so called leaders and flesh traders.
04:58 AM on 06/04/2010
Mr. Kan, just change the way business are done in Tokio, CLOSE the US MILITARY BASE in Okinawa and you will be just fine.
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MJatUCLA
04:58 AM on 06/04/2010
He does seem like a good choice. Japan needs a ton of reform, and that requires strong leadership. Hatoyama turned out to be quite a disappointment. I hope he manages to turn things around. I do like that he's not the grandson of a politician like every other JP PM that comes to mind.

They need to wake up and realize that forcing 12-hour workdays on everyone and maintaining a system that has practically no upward mobility in every major field is a major reason they have a birthrate issue there. Workplace reform is a must if they're going to turn things around. Merely offering to pay families isn't going to help anything, and the aging population is going to bankrupt the country many times over unless they fix the birthrate issue.

Another possible solution: Robots.
02:54 AM on 06/04/2010
I'm sorry, but to me, all Japanese Prime Ministers look alike.
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munki
Global to Local now Local to Global
02:41 AM on 06/04/2010
Japan with so many regime changes - no stability!

Japan - becoming Shogun fights again?

C'mon... STOP it and change!!! REFORM!
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SPQR1775
01:49 AM on 06/04/2010
Well, at least the Japanese have a sense of honor and integrity. When you promise to do something DO IT, nothingis easy, but always stand on principle. Had Hatayamo vote for his country instead of America he would have become one of Japans greatest leaders, he failed. Japan now have a leader who was not selected by the voters. We'll see who is pulling his strings?!
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munki
Global to Local now Local to Global
02:43 AM on 06/04/2010
HATAYAMA was educated in America... should have focused on JAPAN !!!!
01:37 AM on 06/04/2010
Oh no. Japan economy. Another leg down.
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SamEllison
I feel so clean!
01:05 AM on 06/04/2010
Yes he Kan!
Best of luck to you and Japan.
12:48 AM on 06/04/2010
Good luck--Japan has had a rough go of it over the last several years.
12:44 AM on 06/04/2010
I would just like to see a Japanese PM serve more than a year. The leadership changes in Japan are insane.
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12:46 AM on 06/04/2010
Isn't it ironic that Japan is the new Italy while Italy has been stuck with Berlusconi for over a decade?
12:57 AM on 06/04/2010
Yeesh! Ironic and unfortunate.