Prime Minister Ryutaro Hashimoto expressed hope Wednesday that U.N. Secretary General Kofi Annan's visit to Iraq will result in a solution to the Iraqi crisis.

Hashimoto, however, declined to state how Japan would respond if the U.S. actually conducts military strikes against Iraq, but he did say that Iraq is violating the U.N. Security Council's resolutions.

"It is difficult to say (how Japan will react if military attacks are carried out) because it is not clear how such attacks will be conducted," Hashimoto said in reply to a question from Tsutomu Hata, head of the political party Minseito.

Representing Minyuren, the newly formed parliamentary grouping, Hata asked Hashimoto about Japan's response in the event of U.S. military strikes against Iraq and about efforts to resolve the conflict.

Hata made his comments during a question-and-answer session following Hashimoto's policy speech on Monday. Although Hashimoto said Japan is trying to make Iraq accept U.N. inspections unconditionally, he failed to specify what kind of action is being taken.

Moving on to economic matters, Hashimoto reiterated that the government is maintaining fiscal austerity but that measures to boost the economy will not counteract fiscal reforms. "It is vital to implement fiscal reforms and maintain that the government's policy has not been changed. But at the same time, it is important to boost the economy now," Hashimoto said. "I don't think the two will counteract each other."

Hata demanded that the government admit the failures of its economic policies and implement more vigorous pump-priming measures. Although Hata called for the introduction of a 6 trillion yen tax cut, Hashimoto rejected the idea, saying it would simply worsen the country's fiscal situation. Hashimoto also said he is confident that economic recovery will prevail with the measures being implemented.

"I believe the various measures being taken to boost the economy and to stabilize the financial system will help it recover," he said, adding that it is important for the Diet to pass the fiscal 1998 budget to stabilize the economy.