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To: TH who wrote (36409)	7/20/2005 4:32:14 PM
From: Crimson Ghost	Respond to of 110194

Koizumi Is Struggling on Japan Post Bill, Abe Says (Update2) July 20 (Bloomberg) -- Japan's Prime Minister Junichiro Koizumi is struggling to win approval for the sale of Japan Post in the upper house of Parliament, said Shinzo Abe, acting secretary-general of the ruling Liberal Democratic Party. ``I can't give an optimistic outlook, however we will do our best to ensure the passage of the bill,'' Abe said at a regular press briefing in Tokyo. An upper house rejection of the bill, which was narrowly approved in the lower house this month, would amount to a repudiation of Koizumi's economic policies, Abe said. Koizumi has referred to the sale of Japan Post, the world's largest savings institution, as the nation's biggest reform in a century and failure of the bill may trigger elections as the prime minister said earlier this month he would consider a rejection of the sale a vote of no confidence in his government. Abe said he's certain that Koizumi won't resign over the issue. ``There is absolutely no possibility that Koizumi would choose that option.'' Still, he said the impact on markets would be ``major'' if the bill isn't approved. Koizumi said on July 7 he would have dissolved parliament had lawmakers from the more powerful lower house rejected the bill. The vote by lower house legislators on July 5 was 233-228. Close Call Within Koizumi's Liberal Democratic Party, 199 lawmakers voted for the sale and 37 opposed it, prompting him to say that opposition within his ruling party was higher than he had expected. A revised plan in April that watered down some proposals failed to quell resistance to the sale, with opponents saying the post office provides services that private businesses aren't willing to offer, and that jobs would be lost. Koizumi has said private companies rather than bureaucrats should manage Japan Post, the world's largest savings bank with 350 trillion yen ($3.1 trillion) of assets. The yen dropped to 113 against the dollar for the first time since May 2004 on speculation Koizumi's plan to sell Japan Post will be voted down in the upper house before the session ends on Aug. 13. The yen was at 113.13 to the dollar at 4:02 p.m. in Tokyo from 112.68 late yesterday in New York. Lower house lawmakers approved the plan after Koizumi guaranteed that post offices wouldn't be closed and assured postal savings and insurance services would be maintained for at least a decade until the sale is completed in 2017.