LEAD: Cabinet decision on postal bills put off to Wednesday

Japan Policy & Politics, May 2, 2005

TOKYO, April 26 Kyodo

(EDS: UPDATING WITH KOIZUMI'S FRESH COMMENTS IN 5-7TH GRAFS)

The government on Tuesday postponed by one day a Cabinet decision on submitting a set of bills to parliament to privatize Japan Post, due to lingering opposition within the ruling Liberal Democratic Party.

The move resulted from the LDP's cancellation of a planned meeting Tuesday of its decision-making General Council to approve the bills prior to the Cabinet decision.

Prime Minister Junichiro Koizumi said the delay will not affect his plan to submit the bills by Thursday to see them passed through the ongoing Diet session, which ends June 19.

Speaking to reporters at his office, Koizumi threatened to break up the LDP unless the bills clear the legislature, alluding to a possible dissolution of the House of Representatives for a snap election.

''I will crash the LDP unless they are enacted,'' Koizumi said.

In running for the LDP presidency four years ago, he vowed to split the LDP unless the party is changed. He said he would consider the party changed if opponents support the postal bills.

The government on Monday won approval for the policy from LDP executives, having accepted most of the party's requests designed to water down the plan to fully privatize postal savings and life insurance services.

But LDP lawmakers opposing the policy remained discontent and indicated they may not support the bills when they are put to a vote in the Diet.