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Suicide darkens path to post sale

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Julian Ryall

Did Koizumi's government push privatisation rebel too far?

Prime Minister Junichiro Koizumi was prepared for the tough task of forcing the privatisation of Japan's postal system past a concerned public and sceptical politicians, but he was unlikely to have expected the matter to cost lives.

One day after politician Yoji Nagaoka hanged himself with a tie on Monday, Mr Koizumi faced a hostile Diet committee hearing into his plans for the reform of the post office, as the search for the person who tipped Mr Nagaoka over the edge intensified. LDP secretary-general Tsutomu Takebe's name has already been mentioned in the media, and there is speculation the bill will be defeated if the government is shown to have been to blame.

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Aware that much of Japan was watching and that Friday's vote hinged on his performance, the prime minister spoke deliberately and calmly in the face of mutterings and the occasional heckle from the back benches. Silence from his own party could not be taken as a sign of support, either, and he made it clear that he would consider rejection of the bill as a vote of no confidence.

Privatisation of the post office is unpopular with many who fear it will lead to the closure of rural branches, and unequal access to banking and insurance products. With US$3 trillion in assets, it is the largest deposit-taking institution in the world.

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Despite Mr Koizumi's resolute belief in a pet project he has championed from the first day of his administration, analysts are not sure that he will have sufficient support in the Diet's upper house on Friday.

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