Recovery, U.S. troops priority of new Japan leader

TOKYO — Japan's likely next prime minister will create a new Cabinet post to oversee national strategy and the economy, officials said Tuesday, and quickly turn his attentions to proving himself on the diplomatic front — an area in which he is virtually untested.

One of Yukio Hatoyama's first challenges will be with key ally Washington over a plan to move 8,000 U.S. Marines off the southern Japan island of Okinawa, a plan that could cost Japan as much as $10 billion. Some members of his Democratic Party of Japan have balked at that pricetag.

Hatoyama, whose Democratic Party of Japan won a landslide victory in parliamentary elections over the weekend, moved to cement a coalition with smaller allies Tuesday so that he can more easily steer the national agenda. He also met with top leaders of his own party to ensure a smooth transition and discuss his Cabinet appointments.

Hatoyama, a Stanford-educated Ph.D and the grandson of a former conservative prime minister, was to formally replace the Liberal Democrats' Taro Aso as premier in a special session of parliament to be held in the next few weeks.

His left-of-center Democrats soundly defeated the conservative Liberal Democratic Party, which has been in power for virtually all of the past 54 years. They now face a host of severe problems centered on rebuilding the world's second-largest economy and dealing with record-high unemployment.

One of his first moves will be to create a new Cabinet post to oversee fiscal policy and other top national strategy issues, a party lawmaker said. He is also expected to name one of the party's most senior members to take the finance minister portfolio.

"The new post will be a key department that connects the prime minister directly with the entire Cabinet," Kenzo Fujisue, a Democratic Party lawmaker in charge of national security issues, told The Associated Press.

Japan's Kyodo news agency reported that Hatoyama will not make his decisions on the lineup public until the last minute.

Hatoyama did not speak with reporters Tuesday.

Diplomacy — and particularly ties with Washington — were also likely to dominate his first months in office.

After being elected, Hatoyama was expected to travel to New York to attend a session of the United Nations, and officials said U.S. Defense Secretary Robert Gates is planning to visit Tokyo in October to discuss the U.S.-Japan military alliance.