Hosokawa denies resignation reports again

Hosokawa denies resignation reports again

TOKYO (AFP): Japan's Prime Minister Morihiro Hosokawa denied again yesterday that he had told legislators he wanted to resign, while major dailies said the issue would cause political repercussions.

Two upper house legislators who dined with Hosokawa on Tuesday said the prime minister had told them he wanted to resign, a report soon circulated among other politicians, forcing Hosokawa to issue a denial to reporters at midnight.

Speaking yesterday to executives of the Japan New Party, which is led by Hosokawa, the premier was quoted as saying, "I never said it and never thought about it."

The two upper house legislators belonging to the Niin Club, a minor political group, were Kiyoshi Nishikawa and Yasushi Shimomora. Shimomura said Hosokawa sounded serious while Nishikawa took the remarks as a joke, the dailies said.

"The report is expected to cause political ripples," the Yomiuri newspaper said.

Newspapers said in separate articles that parliament might not be able to resume debate this week on the government's budget for fiscal 1994, which began Friday.

Budget deliberations have been stalled since March 10 by the main opposition Liberal Democratic Party (LDP) which has demanded sworn testimony in parliament by Hosokawa's secretary on an alleged shady loan from a Tokyo trucking firm to Hosokawa.

The move has forced the government to introduce a 50-day provisional budget for fiscal 1994, which was given final approval on Friday.

Hosokawa is under increasing pressure from the opposition over a "loan" of 100 million yen (US$970,000) in 1982 from Tokyo Sagawa Kyubin Co. Ltd., a firm at the center of a cash-for-favors scandal which came to light in 1992.