Japan grapples with U.S. base plan before Obama visit

By Isabel Reynolds

TOKYO (Reuters) - Japan struggled with the touchy issue of reorganizing U.S. military bases on the southern island of Okinawa on Wednesday, just a week ahead of U.S. President Barack Obama's first visit to Japan as leader.

Foreign Minister Katsuya Okada canceled a last-minute trip to Washington meant to smooth ties ruffled by a feud over bases, blaming his busy schedule, while Prime Minister Yukio Hatoyama came under fire in parliament for his handling of the relationship, the core of security arrangements in the region.

U.S. Assistant Secretary of State Kurt Campbell was due to meet Okada on Thursday, but it remained unclear whether a way could be found to keep the feud from spoiling Obama's visit.

Hatoyama, in office for less than two months, has pledged to build a more equal relationship with the United States and review bilateral security agreements, sparking concern among investors about the alliance.

He said before his August election victory that the Futenma U.S. Marine base should be moved off the island, an idea supported by 70 percent of Okinawa residents in a poll published this week by the Mainichi Shimbun and local paper Ryukyu Shinpo.

But Washington wants to push ahead with a 2006 plan to relocate it in a less heavily populated part of Okinawa.

Okada spelled out the dilemma facing the new government.

"We think that it is necessary to move things forward while accepting the feelings of the people in Okinawa," he said in response to a question in parliament.

"But, while we will respect the feelings of the people of Okinawa, this issue is also about the Japan-U.S. security alliance, which is relevant to the entire country. This gap is what always becomes the big problem," he added.

"DANGEROUS STATE"

Former defense minister Shigeru Ishiba of the long-dominant Liberal Democratic Party (LDP) took aim at Hatoyama's dealings with the United States in an interview with Reuters on Wednesday.

"Since the Democratic Party took power, the alliance has fallen into a crisis. It is in a very dangerous state," he said.

Ishiba cited disagreements from the base issue to possible cutbacks in the funding Japan provides for U.S. military bases and the likely end of a refueling mission in the Indian Ocean in support of U.S.-led military activities in Afghanistan.

"Just saying 'no' to everything the United States wants is not the way to create a more equal partnership," he added, after quizzing Hatoyama over the issue in parliament.

Chief Cabinet Secretary Hirofumi Hirano told reporters Okada's U.S. trip was canceled because of scheduling difficulties and denied that would affect ties.