Prime Minister Toshiki Kaifu formed a Cabinet Wednesday and pledged to give priority to improving U.S.-Japanese relations strained because of economic friction.
"A most urgent issue is our relationship with the United States," said Kaifu, who will meet with President Bush in Palm Springs, Calif., Friday and Saturday."I do not think our relationship will be damaged by economic problems," Kaifu said at a news conference following his appointment of a 20-member, all-male Cabinet.
U.S.-Japanese relations have been deteriorating because of a nearly $50 billion U.S. trade deficit with Japan and the rapid increase in Japanese investment in the United States.
High-level U.S.-Japanese trade talks ended in frustration Friday, and Bush telephoned Kaifu Saturday to request a meeting.
U.S. officials are hoping Kaifu will use the popular mandate he won in an election Feb. 18 to open Japan's market further to U.S.-made goods.
Emperor Akihito officially appointed Kaifu and his Cabinet at a palace ceremony that followed a night of hectic political wrangling.
Kaifu's selection of his second Cabinet since becoming prime minister was delayed for hours in a standoff with Michio Watanabe, leader of a major party faction.
Watanabe wanted Kaifu to put Takayuki Sato in his Cabinet, but Kaifu refused because of Sato's involvement in a 1970s bribery scandal.