THE Japanese Prime Minister, Mr Tomiichi Murayama, announced his resignation in a move which could clear the way for his outspoken trade minister to take over the post.
Mr Murayama (71), said the three party coalition would form a new government. He ruled out early general elections, which are not due until mid 1997.
He declined, however, to say whether Mr Ryutaro Hashimoto (58), his trade minister and leader of his conservative partner, the Liberal Democratic Party (LDP), was his chosen successor.
"I have decided to resign today," a surprisingly confident Mr Murayama told a news conference. "I thought it was time to renew the people [in government] and make a fresh start in the new year." He said he made up his mind on January 1st.
Coalition party officials said they would hold talks over the weekend to draft a new policy agreement and then choose Mr Murayama's successor, possibly by Monday.
If all goes well, the coalition would convene a special session of parliament on January 11th to formally elect the new prime minister. As long as the coalition holds, it would be able to choose a new leader because the group as a whole commands majorities in both houses of parliament.
"I have unloaded a huge burden," a relieved Mr Murayama told reporters after sipping Chinese rice wine with his aides in Tokyo's Roppongi area just after stepping down.
Coalition officials said Mr Murayama aimed to allow the LDP, the biggest coalition party, to take, charge at least until April. But some analysts warned there was no telling whether the new line up would last even that long.
The small Sakigake party of the Finance Minister, Mr Masayoshi Takemura, is the third member of the coalition.
By April, parliament would have passed the 1996/97 budget. The new prime minister will also host a summit with President Bill Clinton in Tokyo, scheduled for April 16th-18th, a key diplomatic event for Japan.