In a speech that set policy directions for his week-old administration, he pledged to work with China to contribute to peace and stability in Asia, and to strengthen the relationship of trust with South Korea.

'Furthermore, for Asean and other countries, I will promote stronger ties through economic cooperation and other means,' he told the Parliament.

His late father and former premier, Takeo Fukuda, is remembered for the 1977 'Fukuda Doctrine' which urged the building of stronger ties between Japan and South-east Asian countries beyond mere economic links.

Noticeably absent from the new premier's policy speech yesterday were references to the controversial issues touted by predecessor Shinzo Abe, such as revising Japan's war-renouncing Constitution or giving Japan the right of collective self-defence through a re-interpretation of the Constitution.

Yesterday, Mr Fukuda cited as two 'pressing issues' the need to extend Japan's anti-terrorism refuelling mission in the Indian Ocean in support of US-led operations in Afghanistan, and the early resolution of problems with North Korea, including its past abduction of Japanese nationals.

Mr Abe had favoured the use of pressure and made little progress on normalisation talks with Pyongyang.

But since taking office last Tuesday, Mr Fukuda has promised to do whatever is necessary to resume dialogue between the two countries.

Mr Fukuda faces a tricky situation in the extension of Japan's refuelling mission, which he dubbed a 'responsibility Japan has to fulfil as a member of the international community'.

The mission is rejected by the opposition Democratic Party of Japan (DPJ) that now controls the Upper House.

At the outset of his speech, Mr Fukuda consciously set a conciliatory tone, urging 'good faith' talks with the opposition on this and other issues in the national interest.

The 71-year-old Japanese leader yesterday did not smile and rarely looked up from his text throughout his 20-minute address, which was shorter than usual for a maiden policy speech and conspicuously short on details.

He also eschewed catchy buzzwords, proverbs and anecdotes that were the highlights of speeches by former premier Junichiro Koizumi.

Although Mr Fukuda swore to continue the reform policies set by the previous two administrations, he is aware of the need to eradicate the social imbalances that those reforms have created.

'I will definitely not look away from this situation. While not changing the direction of reforms, I will do my best to offer prescriptions to each problem stemming from reforms,' he said.

In last July's Upper House elections, his Liberal Democratic Party (LDP) lost many single-seat wards in rural areas which have been hit hardest by economic reforms.

With the opposition trying to pressure him into calling early elections, Mr Fukuda knows he needs to narrow the income and other disparities between rural and urban areas.

He did not say how he intended to revitalise local economies but made it clear it would not be through an increase in public works projects as in the past.

Although Mr Fukuda's administration has started out with an encouraging 60 per cent public support, it remains to be seen whether he will be able to address the issues that hit voters most, such as pensions and tax reforms.

Unfortunately for Mr Fukuda, higher global prices of crude oil and raw materials are apt to put a brake on Japan's economic recovery.

wengkin@sph.com.sg