The Liberal Democratic Party and Liberal Party reached final agreement Wednesday on controversial security issues, eliminating the last remaining obstacle to the parties' launch of a coalition government.

Prime Minister Keizo Obuchi is to reshuffle his Cabinet today, officially marking the start of the coalition. "We have cleared all preconditions of forming a coalition government," Takeshi Noda, secretary general of the Liberal Party, told a press conference after a meeting of executives of both parties to confirm the outcome of a series of joint policy talks.

The two parties had been holding discussions to iron out policy differences since Nov. 19, when Obuchi, who also heads the LDP, and Liberal Party leader Ichiro Ozawa agreed to form a coalition government before the regular Diet session begins next Tuesday.