Japan reconstruction minister quits in fresh blow to PM

By Shinichi Saoshiro

TOKYO | Tue Jul 5, 2011 7:30am EDT

TOKYO (Reuters) - Beleaguered Japanese Prime Minister Naoto Kan took another blow Tuesday when his reconstruction minister resigned after barely a week in the job over criticism for remarks that offended victims of the March earthquake and tsunami.

The outcry among opposition parties over Ryu Matsumoto's comments had threatened to further hinder the unpopular Kan's efforts to pass key bills in a divided parliament as Japan tries to rebuild from the disasters and end a nuclear crisis.

Analysts said the government probably hoped that Matsumoto's quick resignation would avoid further deadlock over a $25 billion extra budget to aid disaster-hit areas and a compensation scheme for victims of the nuclear crisis at Tokyo Electric Power's tsunami-crippled nuclear power plant in northeastern Japan.

But the furor over Matsumoto, who was also doubling as environment minister, could put added pressure on the prime minister to step down himself.

"Naturally, his responsibility as the person who made that appointment is grave," Yukio Hatoyama, Kan's predecessor, told reporters.

Kan, under fire for his handling of the nuclear crisis, last month survived a no-confidence vote by pledging to quit but has since blurred the timing of his resignation.

"The (opposition) Liberal Democratic Party and New Komeito may be tempted to say that Kan should go right now and until he goes, we're not doing anything," said Sophia University professor Koichi Nakano.

Kan has said he wants to stay in his post until three bills are passed: the small extra budget, legislation to allow fresh borrowing to fund about 40 percent of this year's budget, and measures to promote renewable sources of energy such as solar and wind power as Japan tries to wean itself from nuclear power.

Opposition parties argue that the premier should keep his promise to quit soon, and are pressing Kan's ruling Democratic Party to revise costly spending pledges before helping to pass the deficit-bond issuance bill.

Kan picked a junior minister, Tatsuo Hirano, to be the new reconstruction minister and take charge of Japan's biggest reconstruction project since the years after World War Two -- a costly effort that will add to a public debt already twice the size of Japan's $5 trillion economy.

Hirano, 57, is from Iwate prefecture, one the areas hardest hit by the March disaster, and is known to be close to ruling party powerbroker Ichiro Ozawa, a heavyweight among rebels within Kan's own party. Ozawa's constituency is also Iwate.

Matsumoto, visiting the tsunami-hit regions Sunday, had told Iwate Prefecture Governor Takuya Tasso that the government would not help communities that failed to come up with ideas themselves.

Speaking before TV cameras, Matsumoto also reprimanded Miyagi Prefecture Governor Yoshihiro Murai for keeping him waiting and then ordered journalists not to report the exchange, warning their companies would suffer if they did.

"Minister Matsumoto apologized for hurting the feelings of disaster victims and the government feels sorry as well," Chief Cabinet Secretary Yukio Edano told a regular news conference.

"But there are a lot of tasks right in front of us that we have to tackle without even a day's break. We have to carry on and fulfill that responsibility while taking the criticism seriously."

(Writing by Linda Sieg; Additional reporting by Kiyoshi Takenaka; Editing by Edmund Klamann and Yoko Nishikawa)

Japan reconstruction minister quits in fresh blow to PM

By Shinichi Saoshiro

TOKYO | Tue Jul 5, 2011 7:30am EDT

TOKYO (Reuters) - Beleaguered Japanese Prime Minister Naoto Kan took another blow Tuesday when his reconstruction minister resigned after barely a week in the job over criticism for remarks that offended victims of the March earthquake and tsunami.

The outcry among opposition parties over Ryu Matsumoto's comments had threatened to further hinder the unpopular Kan's efforts to pass key bills in a divided parliament as Japan tries to rebuild from the disasters and end a nuclear crisis.

Analysts said the government probably hoped that Matsumoto's quick resignation would avoid further deadlock over a $25 billion extra budget to aid disaster-hit areas and a compensation scheme for victims of the nuclear crisis at Tokyo Electric Power's tsunami-crippled nuclear power plant in northeastern Japan.

But the furor over Matsumoto, who was also doubling as environment minister, could put added pressure on the prime minister to step down himself.

"Naturally, his responsibility as the person who made that appointment is grave," Yukio Hatoyama, Kan's predecessor, told reporters.

Kan, under fire for his handling of the nuclear crisis, last month survived a no-confidence vote by pledging to quit but has since blurred the timing of his resignation.

"The (opposition) Liberal Democratic Party and New Komeito may be tempted to say that Kan should go right now and until he goes, we're not doing anything," said Sophia University professor Koichi Nakano.

Kan has said he wants to stay in his post until three bills are passed: the small extra budget, legislation to allow fresh borrowing to fund about 40 percent of this year's budget, and measures to promote renewable sources of energy such as solar and wind power as Japan tries to wean itself from nuclear power.

Opposition parties argue that the premier should keep his promise to quit soon, and are pressing Kan's ruling Democratic Party to revise costly spending pledges before helping to pass the deficit-bond issuance bill.

Kan picked a junior minister, Tatsuo Hirano, to be the new reconstruction minister and take charge of Japan's biggest reconstruction project since the years after World War Two -- a costly effort that will add to a public debt already twice the size of Japan's $5 trillion economy.

Hirano, 57, is from Iwate prefecture, one the areas hardest hit by the March disaster, and is known to be close to ruling party powerbroker Ichiro Ozawa, a heavyweight among rebels within Kan's own party. Ozawa's constituency is also Iwate.

Matsumoto, visiting the tsunami-hit regions Sunday, had told Iwate Prefecture Governor Takuya Tasso that the government would not help communities that failed to come up with ideas themselves.

Speaking before TV cameras, Matsumoto also reprimanded Miyagi Prefecture Governor Yoshihiro Murai for keeping him waiting and then ordered journalists not to report the exchange, warning their companies would suffer if they did.

"Minister Matsumoto apologized for hurting the feelings of disaster victims and the government feels sorry as well," Chief Cabinet Secretary Yukio Edano told a regular news conference.

"But there are a lot of tasks right in front of us that we have to tackle without even a day's break. We have to carry on and fulfill that responsibility while taking the criticism seriously."

(Writing by Linda Sieg; Additional reporting by Kiyoshi Takenaka; Editing by Edmund Klamann and Yoko Nishikawa)

India health minister calls homosexuality disease (AP)

NEW DELHI – India's health minister has derided homosexuality as an unnatural "disease" from the West, drawing outrage Tuesday from activists who said the comments set back the country's campaign for gay rights and its fight against HIV.

The comments Monday by Health Minister Ghulam Nabi Azad at a conference on HIV/AIDS in the Indian capital echoed a common refrain in the conservative South Asian nation that homosexuality is a Western import.

"Unfortunately this disease has come to our country too ... where a man has sex with another man, which is completely unnatural and should not happen, but does," Azad said.

Indian Prime Minister Manmohan Singh, Congress Party leader Sonia Gandhi and a slew of government ministers were also present at the conference. There was no immediate comment from the health ministry, and the prime minister's office refused to discuss the Azad's remarks.

Anjali Gopalan, who heads the NAZ Foundation, a rights group that works with HIV positive people and promotes equal rights for homosexuals, said Azad's comments were deeply troubling coming from the health minister of a country fighting a tough battle against HIV infections.

"These comments help no cause. It's definitely not going to help in our fight against HIV," she told The Associated Press.

Roughly 2.5 million Indians have HIV, making it the country with the largest number of people living with the virus in Asia.

Experts say the marginalization of gay people keeps them isolated and makes it harder for HIV/AIDS awareness messages to reach them.

"If you're not going to invest in community building then gay people will continue to be marginalized," Gopalan said.

In 2009, the Delhi High Court struck down a colonial era law — Section 377 of the Indian Penal Code — that made sex between people of the same gender punishable by up to 10 years in prison. While actual criminal prosecutions were rare, the law was frequently used to harass people.

The court ruling was noteworthy in a country where even heterosexual sex is rarely discussed openly.

Over the last decade homosexuals have slowly gained a degree of acceptance in a few parts of India, especially its big cities. Many bars have gay nights, and some high-profile Bollywood films have dealt with gay issues. The last two years have also seen large gay pride parades in New Delhi and other big cities such as Mumbai and Kolkata.

Still, being gay remains deeply taboo in most of the country, and many homosexuals hide their sexual orientation from friends and families.

"How can the health minister say something so unscientific and irrational?" Nitin Karani, a gay rights activist told a television new channel. "He needs to apologize immediately or he needs to go."

This is not the first time Azad's words have embarrassed the government.

A few years ago, he suggested Indians watch more late night television instead of having sex as a means to stem population growth in the nation of 1.2 billion people.

Japan reconstruction minister quits in fresh blow to PM (Reuters)

TOKYO (Reuters) – Beleaguered Japanese Prime Minister Naoto Kan took another blow Tuesday when his reconstruction minister resigned after barely a week in the job over criticism for remarks that offended victims of the March earthquake and tsunami.

The outcry among opposition parties over Ryu Matsumoto's comments had threatened to further hinder the unpopular Kan's efforts to pass key bills in a divided parliament as Japan tries to rebuild from the disasters and end a nuclear crisis.

Analysts said the government probably hoped that Matsumoto's quick resignation would avoid further deadlock over a $25 billion extra budget to aid disaster-hit areas and a compensation scheme for victims of the nuclear crisis at Tokyo Electric Power's tsunami-crippled nuclear power plant in northeastern Japan.

But the furor over Matsumoto, who was also doubling as environment minister, could put added pressure on the prime minister to step down himself.

"Naturally, his responsibility as the person who made that appointment is grave," Yukio Hatoyama, Kan's predecessor, told reporters.

Kan, under fire for his handling of the nuclear crisis, last month survived a no-confidence vote by pledging to quit but has since blurred the timing of his resignation.

"The (opposition) Liberal Democratic Party and New Komeito may be tempted to say that Kan should go right now and until he goes, we're not doing anything," said Sophia University professor Koichi Nakano.

Kan has said he wants to stay in his post until three bills are passed: the small extra budget, legislation to allow fresh borrowing to fund about 40 percent of this year's budget, and measures to promote renewable sources of energy such as solar and wind power as Japan tries to wean itself from nuclear power.

Opposition parties argue that the premier should keep his promise to quit soon, and are pressing Kan's ruling Democratic Party to revise costly spending pledges before helping to pass the deficit-bond issuance bill.

Kan picked a junior minister, Tatsuo Hirano, to be the new reconstruction minister and take charge of Japan's biggest reconstruction project since the years after World War Two -- a costly effort that will add to a public debt already twice the size of Japan's $5 trillion economy.

Hirano, 57, is from Iwate prefecture, one the areas hardest hit by the March disaster, and is known to be close to ruling party powerbroker Ichiro Ozawa, a heavyweight among rebels within Kan's own party. Ozawa's constituency is also Iwate.

Matsumoto, visiting the tsunami-hit regions Sunday, had told Iwate Prefecture Governor Takuya Tasso that the government would not help communities that failed to come up with ideas themselves.

Speaking before TV cameras, Matsumoto also reprimanded Miyagi Prefecture Governor Yoshihiro Murai for keeping him waiting and then ordered journalists not to report the exchange, warning their companies would suffer if they did.

"Minister Matsumoto apologized for hurting the feelings of disaster victims and the government feels sorry as well," Chief Cabinet Secretary Yukio Edano told a regular news conference.

"But there are a lot of tasks right in front of us that we have to tackle without even a day's break. We have to carry on and fulfill that responsibility while taking the criticism seriously."

(Writing by Linda Sieg; Additional reporting by Kiyoshi Takenaka; Editing by Edmund Klamann and Yoko Nishikawa)

Greek fiscal survival vital for euro zone: Finance Minister (Reuters)

ATHENS (Reuters) – Greece will stave off default not only for its own sake but because its survival is vital for the euro zone and the global economy, Greek Finance Minister Evangelos Venizelos told Reuters on Monday.

With help from its EU partners and fresh determination, the debt-ridden euro zone member will regain its fiscal sovereignty as soon as possible and aims to return to markets in the middle of 2014, as expected, the minister said.

"We will make it, because this is vital not only for Greece but for the stability of the whole euro zone and the global economy, because in Greece the stamina of the financial system is being tested," he told Reuters in the second part of an interview.

Appointed in a June 17 reshuffle and speaking after euro zone finance ministers approved on Saturday a critical, fifth tranche of a bailout loan to avert default, Venizelos said he was grateful to EU partners and vowed to fulfill his obligations.

He said he would redouble efforts to raise 1.7 billion euros ($2.5 billion) in privatizations by September, as agreed with the EU and the IMF who pulled Greece back from the brink of bankruptcy with a 110 billion-euro bailout a year ago.

Greece must deliver 50 billion euros in proceeds from a massive and complicated state selloff by 2015, including 5 billion this year. So far, in 18 months in office, the socialists have yet to launch any privatizations.

Amid the worst recession in nearly 40 years, good news for the economy comes from the tourism sector, which makes up about 15 percent of GDP. Revenues are seen rising by about 10 percent this year after a 25 percent slump in 2009-2010, Venizelos said.

"The data we have so far from the Tourism Ministry and the Bank of Greece are encouraging that it will be a good year. Revenues will rise by about 10 percent," he said.

A tough political veteran who has held several portfolios and prepared the 2004 Olympics, Venizelos took in his stride comments by Eurogroup chief Jean-Claude Juncker that Greece's sovereignty must be severely limited during the bailout program.

"Mr. Juncker is a great Philhellene (friend of Greece)," Venizelos said. "He doubtless wants to always help Greece and the euro zone overcome its problems and, primarily, to avoid systemic dangers.

"There is no doubt we have very tough fiscal limitations and we must restore our fiscal sovereignty as soon as possible through the successful implementation of our program," he added.

FOREIGN INSPECTORS

Venizelos denied suggestions foreign inspectors would be placed in ministries to check progress.

"There will be no inspectors," he said. "We can all resort to the knowhow and expertise of the EU and other member states. This does not mean inspectors will be posted or that responsibilities will be removed from the Greek parliament, the Greek government or the Greek public administration."

Venizelos said selloffs and the reform of the tax system were among his top priorities and that he would lay out a detailed plan to fight chronic tax evasion and improve tax collection, which has fallen behind target, next week.

Greece has 20 days from Saturday to set up a privatization body and Venizelos said he would unveil its board to fellow Eurogroup ministers on July 11.

"I will announce this after I complete discussions with the opposition on the 2-3 key people, because we need the widest possible consensus," he said.

The conservative opposition has opposed the bailout, drawing criticism from EU officials, but says it agrees with some parts of the privatization plan, raising hope some political consensus can be reached.

International lenders are working on a plan to provide Greece with an additional 110 billion euros to avoid default which could hit European banks and other lenders.

Asked about a warning by the S&P rating agency that banks' plans to roll over Greek debt could be seen as default, which drove down the euro on Monday, Venizelos said it was crucial that any model included the strictly voluntary participation of private lenders.

"As markets are strict and merciless, we want the format that results from the next program to have a shape that is accepted by markets and they react positively," he said.

(Editing by Peter Millership)

Tunisian source: Libyan oil minister defects (AP)

TRIPOLI, Libya – Libya's oil minister defected and fled to Tunisia, a Tunisian security official said Tuesday, one of the highest profile figures to abandon Moammar Gadhafi's government.

Shukri Ghanem, the head of the National Oil Co. and Libya's oil minister, crossed into Tunisia by road on Monday and defected, the Tunisian official said. The official, based in the region around the Ras Jdir border crossing, spoke on condition of anonymity because he was not authorized to speak to the media.

Ghanem is one of the most prominent members of Gadhafi's government to leave amid fighting between the military and rebels seeking to end Gadhafi's more than 40-year rule.

Others who have defected include Foreign Minister Moussa Koussa, one of Gadhafi's earliest supporters; Interior Minister Abdel-Fatah Younes; Justice Minister Mustafa Abdul-Jalil, and Ali Abdessalam Treki, a former U.N. General Assembly president. A number of ambassadors and other diplomats also have resigned their posts.

A NATO-led campaign — authorized by the United Nations — is enforcing a no-fly zone over the country and launching airstrikes to try to protect civilians from attacks by Gadhafi's forces.

Early Tuesday, NATO jets pounded two government buildings in the Libyan capital, including the Interior Ministry, setting them on fire. A government spokesman suggested that the ministry was targeted because it contained files on corruption cases against senior members of the Benghazi-based rebel leadership.

In Geneva, meanwhile, the U.N. refugee agency said Tuesday that Libyan authorities appeared to be encouraging African migrants to board unseaworthy boats bound for Europe.

Melissa Fleming, a spokeswoman for the U.N. High Commissioner for Refugees, told reporters that the Libyan conflict has opened up a route for migrants that was closed for two years because of an agreement between Libya and Italy.

Already some 14,000 people — mostly from sub-Saharan Africa — have used Libya as a springboard to reach Europe, and thousands more are poised to make the treacherous sea journey in the coming weeks as weather conditions in the Mediterranean improve.

"The authorities (in Libya) are not discouraging, at all, in fact there may be signs that they are encouraging these boat journeys," she said.

Some are migrants fleeing the fighting in Libya, but others appear to be crossing into Libya from elsewhere in Africa because it is easier to get onto smugglers' boats there.

Ghanem, the latest minister to defect, had been at odds with the Gadhafi regime before, basically losing his post for a while in 2009 as two of Gadhafi's sons differed on the direction the country should take in reforming its political and economic systems. His resignation was seen, at least in part, as linked to the creation of a new superstructure governing the nation's oil sector, with the new agency designed to replace one he supported.

Before assuming the oil ministry's portfolio, Ghanem served for around three years as prime minister at a time when Libya was emerging from under the cloud of more than a decade of international sanctions.

Ghanem is among Gadhafi government officials under U.S. sanctions announced by the Treasury Department in early April.

Abdel Moneim al-Houni, a former Libyan Arab League representative who was among the first wave of Libyan diplomats to defect, confirmed that Ghanem had defected but said no official announcement has been made out of concern for the safety of family members who are still in Tripoli. Al-Houni said that he spoke to Ghanem after he crossed the border.

"Most of the officials remaining in Tripoli are forced to stay under intimidation and pressure. They are not happy with what is happening," Al-Houni told the AP.

Guma El-Gamaty, London-based spokesman for the Libyan opposition's Interim National Council, said "all what we know is that Shukri Ghanem is in Tunisia."

NATO has stepped up strikes on the Libyan capital Tripoli, and one of the buildings hit early Tuesday was used by the Interior Ministry, which is responsible for internal security.

Libyan spokesman Moussa Ibrahim suggested the ministry was targeted because it contained files on rebel leaders in Benghazi, the de-facto capital of the eastern half of the country, which is under opposition control.

"If they (NATO) are really interested in protecting civilians ... then we call upon them to stop and start talking to us," Ibrahim said.

In Moscow, Russia's foreign minister on Tuesday urged Libya's government representatives to allow the delivery of humanitarian aid.

Minister Sergey Lavrov says that Gadhafi's representatives reiterated their willingness to consider a peace plan tabled by the African Union that called for an immediate cease-fire and dialogue between the government and the rebels. The rebels have rejected that plan.

The meeting follows a Monday visit to Moscow by the United Nations special envoy for Libya.

___

Bouazza ben Bouazza reported from Tunis, Tunisia. Associated Press reporters Maggie Michael and Tarek el-Tablawy contributed from Cairo, Egypt.