Japan to get new foreign minister as Kan reshuffles Cabinet to put stamp on his administration

Cabinet shuffle to give Japan new foreign minister

TOKYO — Prime Minister Naoto Kan planned to name a new foreign minister in his Cabinet reshuffle Friday as he sought to put a new stamp on the administration and party leadership after surviving a challenge for his job earlier this week.

Seiji Maehara, a security expert who had been transport minister, was likely to replace Katsuya Okada as foreign minister. Okada will become the No. 2 person in the ruling Democratic Party of Japan.

The Cabinet resigned en masse Friday morning to make way for the new lineup, to be announced later in the day. Other key minister posts, including defense, finance and trade, are largely expected to be retained.

An expert in defense and diplomatic issues, Maehara has served parliamentary and party panels on the U.S-Japan security alliance and other military strategic issues. He is seen as even-keeled and mild-mannered but straightforward in his communication style.

Maehara, 48, made a splash soon after becoming transport minister last fall by suspending a massive dam project that the Democrats considered a prime example of wasteful public works spending under the long-ruling conservatives whom they overthrew last year.

Kan, a fiscal conservative who took office just three months ago, won a party leadership election Tuesday and promised to use his victory over party veteran Ichiro Ozawa to push ahead with efforts to cap spending, create jobs and build party unity within the party after the divisive election.

“Now that the election is over, we will band together to work so that we can break the sense of stagnation that has affected Japan in the past 20 years,” Kan said after senior members of the party endorsed Okada’s new post.

Kan and Maehara must address a diplomatic spat with China over a boat collision near some disputed islands in the East China Sea claimed by both countries. Kan leaves for the U.N. General Assembly next week, but has no plans to meet with Chinese Premier Wen Jiabao, partly due to the tension.

Maehara will also become the point man over a plan to relocate a major U.S. Marine base now housed on the southern island of Okinawa, a divisive issue that helped force out Kan’s predecessor. Kan has said he will honor an agreement with Washington to keep the base on Okinawa despite vehement opposition from local residents.

Kan’s administration faces a host of other problems, from reviving Japan’s sluggish economy to passing legislation through a divided parliament. In July, the Democrats lost control of the less powerful upper house. To pass bills, Kan’s administration will have to seek support on a case-by-case basis with opposition parties.

Japan surprised markets Wednesday by ordering the Bank of Japan to intervene in the currency market to weaken the yen, whose spike to 15-year highs has squeezed foreign income at the nation’s key exporters like Nissan Motor Co. and Toshiba Corp. The dollar has since risen, although some analysts say the move’s impact will be short-lived.

The dollar, which had fallen as low as 82.87 yen Tuesday was trading at 85.75 yen midday Friday in Tokyo.

Kan and Okada face the tough task of unifying the ruling party after after the fractious leadership election where nearly half the parliamentary party members backed Ozawa, his challenger, although regional party members overwhelming backed Kan.

Okada, who as the No. 2 controls party politics and overseeing election campaigns, has in the past been critical of Ozawa and his funding scandals, so it remains to be seen how his appointment will be received.

“I will do my utmost to manage the party with fairness and transparency,” Okada said.