Just-resigned Hatoyama not ruling out leaving LDP to form new party

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TOKYO, June 15 Kyodo -
Kunio Hatoyama, who resigned as internal affairs and communications minister
Friday, did not rule out the possibility Monday of leaving the ruling Liberal
Democratic Party to form a new party.
''I have no intention at the moment either of leaving the LDP or creating a new
party,'' Hatoyama said at a news conference at the internal affairs ministry.
But he also suggested that he may do so in the future when he thinks it is
right.
Hatoyama was effectively sacked by Prime Minister Taro Aso on Friday after
putting the premier in a bind for several weeks over the management of Japan
Post Holdings Co., a body set up as a result of Japan's postal privatization
reforms.
Hatoyama, one of Aso's closest allies, insisted that Yoshifumi Nishikawa be
removed as head of the government-owned Japan Post, while reformists and many
other lawmakers in the LDP said Nishikawa should stay and press ahead with
reform.
He had said Nishikawa should be held responsible for the firm's recent
controversial attempt to sell the Kampo-no-yado nationwide resort inn
properties at what Hatoyama considered too-low prices.
''I like Prime Minister Aso a lot and trust him...and there is no change in
that feeling,'' Hatoyama said. ''But on this particular case, the prime
minister made a completely wrong decision.''
Noting that Aso sent him a letter earlier this year along with a list of
possible candidates to succeed Nishikawa, Hatoyama said they initially agreed
that Nishikawa should go. But he said Aso later changed his mind after
listening to other people's opinions.
In the evening, Aso declined to make any comment on whether or not he actually
sent Hatoyama the letter and list or whether he had been thinking of replacing
Nishikawa in the spring.
After receiving Hatoyama's resignation, Aso told reporters Friday evening that
he thinks the government should not interfere with the management of a company
that is moving toward privatization.
''That view has no validity,'' Hatoyama said, adding that the law stipulates
that the internal affairs minister has the ultimate authority to decide on
Japan Post board members. The government still wholly owns Japan Post Holdings.
''The issue of the Kampo property sale is just the tip of the iceberg and I
will continue doing my best to protect the common property of citizens,'' he
said on the Japan Post issue.
Even before his resignation Friday, it was rumored that Hatoyama might leave
the LDP to form a new party or to tie up with his brother, Yukio Hatoyama,
president of the main opposition Democratic Party of Japan, amid increasing
signs of their closeness.
Meanwhile, newly appointed Internal Affairs and Communications Minister Tsutomu
Sato said separately Monday that he will carefully consider whether Nishikawa
should remain president of Japan Post, after having indicated Friday that he
should stay.
''I made a little too bold a statement (Friday) because there were some things
I didn't fully comprehend at that point in time,'' said Sato, who is also chief
of the National Public Safety Commission, at a press conference Monday.
He said the business improvement order that the internal affairs ministry
issued to Japan Post after the deal for the postal service firm to sell
Kampo-no-yado inns to leasing firm Orix Corp. was aborted will be key in
deciding whether Nishikawa should stay on.
''I will make a decision carefully after thoroughly consulting with'' Japan
Post, Sato said.
Japan Post decided late last year to sell dozens of Kampo-no-yado inns and nine
housing facilities to Orix for 10.9 billion yen after competitive bidding.
But then-minister Hatoyama urged a review of the plan, arguing it was a done
deal between Japan Post and Orix before the bidding.
Japan Post and Orix subsequently canceled the deal.
Sato is expected to study a report that Japan Post is set to present to the
ministry, describing how it intends to clean up its business operations, before
deciding on how to deal with Nishikawa, given that some LDP members share
Hatoyama's view, political watchers say.
After meeting with Chief Cabinet Secretary Takeo Kawamura on Monday, Sato told
reporters, ''I asked him to leave the matter to me for a while.''
The next possibility for announcing some kind of answer to this issue will be
Japan Post's shareholders meeting scheduled for June 29, Sato said.
Nishikawa called on Sato on Monday morning and is believed to have briefed the
minister about progress made in compiling the report.
==Kyodo