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The Liberal Democratic Party and potential coalition partner New Komeito agreed Monday to formulate a second supplementary budget for fiscal 1999 focusing on reinforcement of telecommunication networks and other infrastructure, officials of the two parties said.

The agreement was reached during policy coordination talks between Yukihiko Ikeda, LDP policy affairs chief, and his New Komeito counterpart, Chikara Sakaguchi. New Komeito plans to join the current LDP-Liberal Party coalition at the end of September.

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