Japanese finance minister Taro Aso has retracted a comment he made this week suggesting Japan should follow the Nazi example of how to change the country's constitution.

Mr Aso has drawn outrage for the remark that Japan should study how the Nazi party stealthily changed Germany's constitution before the Second World War before anyone realised it.

Speaking to reporters, Mr Aso said today that he was misunderstood and only meant to say that loud debate over whether Japan should change its postwar constitution to allow a higher profile for the military was not helpful.

He made the remark during a Tokyo speech on Monday to an ultra-conservative group.

The comments have drawn complaints from Jewish groups and neighbouring South Korea as an example that Japan has not learned from its militaristic past.

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