Japanese PM pledges big change in government

New Japanese Prime Minister Yukio Hatoyama launched an untested government that aims to radically change how the country is run, wean the economy from exports and create more equal ties with close ally Washington.

Hatoyama's Democratic Party of Japan trounced the long-ruling Liberal Democratic Party in last month's election. He now faces pressure to make good quickly on promises to focus spending on consumers, cut waste and reduce bureaucrats' control over policy.

He must also try to ensure that a nascent recovery from Japan's worst recession since World War II stays on track despite a huge public debt.

Managing ties with the US while charting a more independent course will be a further priority.

"I want to create the kind of politics in which politicians take the lead without relying on bureaucrats," Mr Hatoyama, 62, wearing his lucky gold, silver and blue striped tie and signature pocket handkerchief, told his first news conference after being voted in by Parliament yesterday.

"We might make mistakes as we do things by trial and error. We want the people to be tolerant... We would appreciate if the people nurture the new government with patience."

Mr Hatoyama's vow to steer Japan on a more independent diplomatic course has sparked concerns about possible friction with top ally the US ahead of his diplomatic debut there next week, where he will meet President Barack Obama.

The US-educated Hatoyama is expected to reassure Mr Obama over ties and perhaps postpone calls for renegotiation of agreements on US troops stationed in Japan.

"The first step will be to build a trusting relationship with President Obama," Mr Hatoyama said. "Japan has tended to have a passive role in its relationship with the United States. We want an active role. We want the kind of relationship where we can tell one other what we are thinking frankly."

On his return, Mr Hatoyama faces the urgent task of drafting a budget for the fiscal year from next April 1 and finding ways to plug holes in this year's budget caused by sliding tax revenues as Japan struggles out of recession.

Mr Hatoyama's Cabinet, a balance of former Liberal Democrats, ex-socialists and younger conservatives, will have to hit the ground running to address headaches like the budget and deeper problems like the bulging costs of a fast-ageing society.

Mr Hatoyama's choice of veteran lawmaker Hirohisa Fujii, 77, as finance minister soothed some concerns about government spending and the debt burden, but the former finance mandarin moved currency markets even before he was sworn in.