Japan's new prime minister, Mr Yoshiro Mori, set out his policy priorities yesterday in a speech to the Diet. Continuity was stressed in economic and political affairs and in basic foreign policy orientations. It could hardly be otherwise, given that he has just succeeded Mr Keizo Obuchi, who suffered a stroke last weekend. Pressure is on Mr Mori now to call early elections in order to secure a proper mandate for economic reform and political leadership. Within the Liberal Democrat party apparatus he has a strong base, but the public has precious little knowledge of his undoubted political skills and experience.
Mr Obuchi's illness has come at an unfortunate time for Japan. There is some evidence that his efforts to revive its sluggish economy with a multi-billion dollar stimulus package is eventually taking effect, despite the great reluctance of Japanese consumers to spend more in a period of such uncertainty. The policy of gradual structural reform has been found wanting as too slow by international critics; but it is very much in keeping with the government's cautious approach to the economy.
Mr Obuchi had some success with banking reform, but has resisted pressure from the United States for more radical deregulation of the telecommunications industry. It is hard to see the parties campaigning for more rapid changes in an election. Mr Mori has a difficult decision to make on whether to go to the polls immediately. An election has to be held by October. Japan is hosting the Group of Eight summit in July, from which Mr Obuchi hoped to gain some electoral kudos. But Mr Mori may be more inclined to cash in on a sympathy vote for his predecessor. Combined with continuing disarray among the opposition parties, this gives him a tactical advantage.
The coalition with the New Komeito party and a rump group of the smaller Liberal party which deserted Mr Obuchi before he became ill, looks a likely winner whenever the voting is held. A rapidly renewed mandate would clear Mr Mori of his lame duck image and might open the way to more decisive leadership in economic, political and foreign policy, which is universally acknowledged to be necessary. It cannot be assumed this is impossible within the Liberal Democrat factions from which Mr Mori has emerged; much depends on personality and the particular political conjuncture. Mr Obuchi became a stronger prime minister than many expected.
In foreign policy, Japan has become more assertive in recent years, a trend that is also likely to continue. Relations with the US and China are preoccupying, and Mr Mori has pledged to develop further the better relations Mr Obuchi forged with South Korea, which he is to visit later in the month.