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Apparently backpedaling on administrative reform efforts, the ruling Liberal Democratic Party and its two smaller allies on Tuesday confirmed they will demand that the three services of the posts ministry be maintained as state-run.

The confirmation came after months of discussions among the ruling alliance that were sparked by a government panel’s recommendation in September that “kanpo” life insurance and postal savings services be privatized. The recommendation was in line with one of Prime Minister Ryutaro Hashimoto’s basic policy pillars supporting government streamlining: Government tasks that can be dealt with by the private sector should be left to the private sector.

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