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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Rejection of postal bill widens Japan rift

Associated Press

TOKYO – Japan’s upper house of Parliament rejected a proposal to privatize the country’s postal system today, and Prime Minister Junichiro Koizumi immediately called an emergency Cabinet meeting to dissolve the lower house.

The 125-108 defeat was a heavy blow to Koizumi, who has championed postal reform for more than a decade. The vote revealed deep divisions in his ruling Liberal Democratic Party – national broadcaster NHK reported 22 LDP members voted against the measure.

The legislative package would have created the world’s largest private bank, but opposition was strong among opposition and LDP lawmakers who said the measure would cut postal services to rural areas and lead to layoffs.

NHK and Kyodo News agency reported that Koizumi told LDP executives after the vote that he would dissolve the lower house of Parliament.

A snap election was expected to be a tough challenge for the Liberal Democratic Party, which has been slowly declining in popularity despite its nearly unbroken string of 50 years in power. The opposition Democratic Party has made strong gains in recent elections.

Chief Cabinet Secretary Hiroyuki Hosoda had warned earlier today that dissolution of the powerful lower house of Parliament was inevitable if the package was voted down.