Factbox: Japan PM Kan's key policies

TOKYO (Reuters) - Japanese Prime Minister Naoto Kan, who defeated powerbroker Ichiro Ozawa in a party leadership vote on Tuesday, must now try to unify the party while coping with a strong yen, weak economy, big public debt and divided parliament.

Following are key points of Kan's policies.

ECONOMY

-- Implement already announced growth strategy and create jobs in areas such as medicine, nursing care and the environment.

-- Push forward with the government's already announced economic steps, with spending of 915 billion yen ($10.9 billion) coming from reserves in this fiscal year's budget, and compile an extra budget if economic conditions worsen further.

-- Try to implement pledges from the party's 2009 campaign manifesto after doing the utmost to cut waste, but be frank about what cannot be done because of insufficient funding.

-- Reach a decision on corporate tax cuts by December, when the budget for the fiscal year from next April is compiled.

-- Act together with the Bank of Japan to beat deflation.

-- Act decisively to stem the yen's rise as needed. Kan has said that joint intervention would be difficult but that his government has been urging other countries not to react negatively if Japan takes any action.

FISCAL REFORM AND SOCIAL SECURITY

-- Consider tax reform including a possible rise in the sales tax, along with holding a debate on how to fund the social welfare system.

-- Seek a public mandate when implementing tax reform.

-- Try to create a virtuous cycle of reforms that would spur economic growth, help fiscal consolidation and support the social security system.

-- Cut waste to promote fiscal reform, aim to cut public sector personnel costs by 20 percent.

DIPLOMACY

-- Deepen U.S-Japan ties while building trust with Asian nations and promote an East Asian Community.

-- Make utmost efforts to lessen the burden on the people of the southern Japan islands of Okinawa while sticking to a U.S.-Japan agreement on relocating the U.S. Futenma airbase in Okinawa.

(Reporting by Yoko Nishikawa; Editing by Chris Gallagher)

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