TOKYO - AFTER vacillating for months, Prime Minister Taro Aso has set his sights on an Aug 30 general election, ruling party officials said yesterday.

His decision came a day after the ruling Liberal Democratic Party (LDP) suffered a historic defeat at the hands of the opposition Democratic Party of Japan (DPJ) in local elections in Tokyo.

'I want to make the utmost efforts to have important Bills passed this week, including the organ transplant legislation,' a spokesman quoted the Prime Minister as telling his ministers and senior LDP executives at a meeting yesterday afternoon.

'Having done that, I want to seek the people's mandate by dissolving the Lower House early in the week beginning July21. Election Day will be Aug 30,' Mr Aso reportedly said.

Officials said he may dissolve the Lower House as early as Tuesday next week.

The Prime Minister sent his party into a flurry of activity on Sunday night after he contacted senior LDP lawmakers and indicated that he was about to dissolve the House.

Reports said the Japanese leader had wanted to do so today and had wanted to hold a general election on Aug8.

But LDP lawmakers, as well as the LDP's junior partner, Komeito, were aghast at the idea. Holding an election so soon after the party's setback was seen as suicidal.

The LDP has previously lost national elections held soon after elections in Tokyo in which the party was roundly thrashed by the opposition.

If Mr Aso had gone ahead with his Aug8 election plan, it could have meant the LDP potentially heading for another disastrous defeat by the DPJ.

Read the full story in Tuesday's edition of The Straits Times.