A government panel studying the relocation of the functions of the capital outside Tokyo said June 20 that it will postpone a decision on a site for an unspecified period beyond the October 1998 deadline in line with the state's decision to delay the project.

Akito Arima, acting head of the panel, said the members did not adopt a new deadline at a meeting June 20. But he said the panel will try to choose a site "not so distant" from the original deadline. Because the present two-year term for the panel members ends in December 1998, some observers believe a conclusion may be reached by that time.

The panel was originally to select a new place for the administrative, legislative and judicial functions of the capital outside Tokyo so construction could start by 2001 and the Diet could hold its first session at the new venue in 2010. But the government of Prime Minister Ryutaro Hashimoto decided earlier this month not to inject public money for the costly relocation of the capital between 1998 and 2003 -- the period in which the government has pledged to make every effort to reduce the nation's fiscal deficits.