But it is far from what Prime Minister Junichiro Koizumi is pushing for.

Opposition within the Liberal Democratic Party is making it difficult for Prime Minister Junichiro Koizumi and his allies to deliver on the government's postal privatization plan.

``(The LDP's policy) is quite far from the government's,'' Koizumi said Tuesday night after the LDP General Council approved its own basic policy for postal reform. ``There is still a long way to go.''

The main obstacle to compromise is universal service coverage.

The LDP wants all three main privatized businesses-mail delivery, postal savings and life insurance-to provide uniform services throughout the nation.

In contrast, the government's basic policy adopted in September requires only the new mail delivery entity to offer services in every corner of the nation.

The government's plan calls for dividing Japan Post into four companies-mail delivery, postal savings, life insurance and over-the-counter services-under a holding company from April 2007.

But, in an apparent nod to opponents of the reform, the LDP policy outline withholds a decision on privatization itself. The party will make the final decision after hearing anew from the government about its plan.

General Council Chairman Fumio Kyuma hailed the council's approval of the basic policy, saying it provides a ``venue (for the government and the party) to discuss the issue on an equal footing.''

Nevertheless, opponents will likely delay the introduction of a package of postal privatization bills to the Diet during its regular session next year.

``The prime minister has told me to prepare a package faithfully in line with the (government's) basic policy,'' said Heizo Takenaka, Koizumi's postal right-hand man. ``But this will be very difficult to do because the (LDP) plan is so exacting.''

Takenaka, the state minister in charge of privatization of postal services, made the remark to reporters Tuesday after receiving a stern warning from the party's policy chief.

``You should be aware that sentiment is running very high within the party (against privatization),'' Kaoru Yosano told Takenaka at the party headquarters.

The party leadership initially planned to compile the policy on the assumption that privatization would go through.

It also planned to refrain from offering counterproposals to the four-entity plan to ``avoid a head-on clash with the government,'' according to a senior official.

But such steps were apparently not enough to placate opponents.(IHT/Asahi: December 23,2004)