Aso surrounds himself with nationalist allies

JAPAN:TARO ASO has been confirmed as Japan's new prime minister and immediately formed what is sure to be one of the country's shortest-lived - and most right-wing - cabinets of the last half century.

Mr Aso (67), who replaced outgoing leader Yasuo Fukuda yesterday, said he felt "heavy responsibility"
amid growing economic turmoil in the world's second-largest economy. "When I look at the financial situation and other things, I feel like we're in a turbulent period - not in peacetime."

He is expected to call a general election next month in an effort to shore up the waning power of the
ruling Liberal Democrats, who are struggling amid plummeting ratings and a divided parliament.

As expected, the new prime minister, an outspoken nationalist with strong views on foreign policy
issues, has surrounded himself with allies from his party's conservative wing.

New finance minister Shoichi Nakagawa (55) is a hawk who supports a stronger military and has
warned that Japan risks becoming a province of China. Two years ago he caused a furore when he suggested that Japan arm itself with nuclear weapons.

Nariaki Nakayama (65), a former education minister who leads a right-wing parliamentary group that describes most Japanese war crimes, including the 1937 Nanjing Massacre, as fabrications, is the new transport minister.

Kunio Hatoyama (60), who, as justice minister, executed a record number of condemned prisoners,
becomes internal affairs and communications minister.

New defence minister Yasukazu Hamada (52), also a vocal nationalist, is one of Japan's leading prowhaling politicians.

Mr Aso also picked two offspring of former Japanese leaders: Hirofumi Nakasone, the 62-year-old son of former prime minister Yasuhiro Nakasone, was named foreign minister, and Yuko Obuchi (34), daughter of the late prime minister Keizo Obuchi, will tackle the problem of Japan's declining birth rate.

The new cabinet inherits a long list of problems, including a looming recession and a parliament split between the LDP and rival party the Democrats (DPJ), which dominates the upper house.

In a sign of tensions to come, the upper chamber voted DPJ leader Ichiro Ozawa as alternative prime minister, forcing the lower house, which is controlled by the LDP, to overrule them.

With his typical flair for the dramatic, Mr Ozawa gave a speech this week warning of a showdown
between his party and the LDP. "The final battle has begun," he said.

Mr Aso has so far stayed silent on the date of the general election but most observers believe he cannot afford to wait long. He is the third LDP leader to become prime minister without a popular mandate, which he will need if he is to carry out his government's agenda.

The divided parliament has created a backlog of legislation, including a badly needed supplementary
budget and a controversial Bill extending Japan's support for US military operations in Afghanistan. Mr Aso has promised a costly boost in public spending to stimulate the faltering economy.