National News

LIMA -- Prime Minister Taro Aso said he will not submit the draft of a second supplementary state budget to the current Diet session because opposition leader Ichiro Ozawa's promise to cooperate in Diet deliberations cannot be trusted.

"What he says can't be trusted. About a year ago, he said he would resign, but didn't do so," Aso told reporters at a hotel in Lima on Friday evening.

During a top-level meeting on Monday, Ozawa, leader of the largest opposition Democratic Party of Japan (DPJ), told Aso that the DPJ will cooperate in Diet deliberations on important bills on condition that the government submit the draft of the second supplementary budget to the ongoing Diet session.

Aso also suggested the government will submit the draft to the regular Diet session which convenes early next year, after watching the development of discussions on tax reform later this year and the details of the draft state budget for fiscal 2009.

"We must take into consideration loans for small and medium-sized businesses, measures that require tax system reform and measures that are also related to the budget for next fiscal year," the prime minister said. "We'll make a final decision (on the supplementary budget) after considering these matters."

Aso said it is natural that some within the ruling Liberal Democratic Party (LDP) are criticizing him for deciding not to submit the draft supplementary budget to the current Diet session.

"It'd be a problem if nobody expressed opinions about it," Aso said. "It's desirable for a decision to be made after various opinions are expressed."

Aso said that how long the current Diet session will be extended depends on opposition parties' response to important bills.

"It depends on the opposition parties' response. The bill to revise the Law on Special Measures for Strengthening Financial Functions is really important. If (the DPJ) remains opposed to it, the session may be extended longer."

Aso said he has not yet decided on the timing of dissolving the House of Representatives for a snap general election.

"What makes prime ministers decide to dissolve the chamber depends on each individual. I haven't decided yet," he said.