Japanese press reports said Prime MinisterYasuhiro Nakasone has said he may compromise on his
controversial sales tax plan, bowing to widespread opposition
even within his own party.
    The reports said he told a meeting of supporters of his
ruling Liberal Democratic Party today the proposed five pct tax
should be amended if there was anything wrong with it.
    Officials were not immediately available for comment.
    Until now, Nakasone had vowed to press on with the tax as
part of his plan to reform Japan's 36-year-old tax system.
    But most Japanese newspapers and news agencies quoted him
as saying today he would not foist the tax on the Japanese
people if they hated it.
    Opposition parties and some industry groups say the tax
breaks Nakasone general election campaign promises last July
and would discourage consumer spending, needed to meet
government pledges to try to stimulate economic growth.
    Pressure for the tax to be amended or shelved is likely to
increase soon, before a first round of local elections due on
April 12, political analysts said. Resistance has spread from
opposition parties and affected industries to the LDP.
    Some 36 of Japan's 47 provincial governments have called
for the plan to be scrapped or handled carefully, government
officials said.
    Some leading LDP candidates for the local polls have not
asked Nakasone to make a campaign speech for them as they fear
his presence would weaken their position in the elections.
 REUTER
