He wants to pass privatization bills-opposed by many LDP members-in the Diet this year.

Prime Minister Junichiro Koizumi on Tuesday specified two targets in his sights for 2005: a party that refuses to change and a country that refuses to come clean.

In his New Year news conference, Koizumi emphasized that postal privatization will be the ``biggest task for this year.'' He also reiterated that Tokyo will continue negotiating with North Korea ``through both dialogue and pressure'' in resolving the abduction issue.

In September, Koizumi's Cabinet approved a basic policy that would split Japan Post into four separate companies under a holding company by April 2007, a first step toward full privatization of postal services.

But Koizumi's Liberal Democratic Party came out with its own postal ``reform'' plan that promotes maintaining the status quo and would hinder Koizumi's plans. Critics say the prime minister's biggest challenge for postal privatization will come from the anti-reformers in the LDP.

``A package of privatization bills will be compiled along the lines of the basic policy, and I would like both the ruling and opposition blocs' understanding over this policy,'' Koizumi said. ``I will do my utmost to have the bills passed during this year's regular Diet session.''

Privatization of postal services-mail delivery, postal savings and life insurance-has been a pet project of Koizumi long before he became prime minister. He would like to see it take form before his second term as LDP president ends in autumn 2006.

Another issue Koizumi wants to resolve before his term expires is the fate of 10 Japanese believed to have been abducted to North Korea.

Officials in Pyongyang insist that eight of the Japanese are dead and the two others never entered North Korea. But ``evidence'' presented to back their claims backfired, triggering a wave of calls among Japanese lawmakers and the public for Tokyo to impose economic sanctions on Pyongyang.

For instance, North Korea in November handed over cremated remains it said were of Megumi Yokota, who was 13 years old when she was abducted by North Korean agents in 1977. But DNA tests in Japan proved that the ashes belonged to two other people.

Pyongyang has protested the test results and the discrepancies pointed out by Tokyo in North Korea's reports on the missing Japanese.

``The North Korean side has suggested breaking off (bilateral working-level talks on the abduction issue),'' Koizumi said. ``But we need to determine the difference between what North Korea says on the surface and its actual intentions.''

Although some political observers believe Koizumi wants desperately to normalize relations with Pyongyang during his term, one of his remarks Tuesday indicated he is not so adamant.

``I do not intend to set a deadline for normalization,'' he said.

He also touched on his visits to Yasukuni Shrine, which honors the nation's war dead, including Class-A war criminals. The visits have triggered outrage from China and other Asian countries that view the shrine as a symbol of Japanese militarism.

``I don't believe the Yasukuni visits are the only major issue between Japan and China. I will make tenacious efforts to win China's understanding. I will make my decisions about my visit to Yasukuni Shrine appropriately,'' Koizumi told reporters.

On the issue of constitutional amendments that the LDP is currently planning, Koizumi said such a project would need the cooperation of New Komeito.

The junior coalition member has so far been apprehensive about revising the Constitution, especially war-renouncing Article 9, which also bans the threat or use of force to settle international disputes.

Touching on the Dec. 26 earthquake and tsunami that devastated vast areas of southern Asia, Koizumi stressed the government's resolve to do its utmost to provide aid to the victims.(IHT/Asahi: January 5,2005)