Despite comments from senior LDP officials that the ruling party would abide by an agreement made last week, it apparently failed to do so when delivering its latest financial stabilization proposals to opposition parties on Thursday.
The Democratic Party of Japan and Heiwa-Kaikaku parliamentary group said the LDP's outline is unacceptable because it greatly deviates from Friday's agreement between Prime Minister Keizo Obuchi and the two opposition parties' leaders.
The LDP said it would present specific provisions later in the evening and seek further negotiations. But prospects turned dim as negotiations broke down shortly after the outline was presented.