Coalition members joined the opposition in criticizing Prime Minister Yoshiro Mori on Thursday after it was learned he accepted a 40 million yen membership at a Yokohama golf club from a business executive for virtually nothing.

Prime Minister Yoshiro Mori appears pensive at a conference.

The news sparked a member of the largest faction of Mori's Liberal Democratic Party to call for a quick party presidential election, currently slated for September.

In addition, a senior member of coalition partner New Komeito described Mori's deeds as inappropriate.

Mori's aides said the prime minister received membership at the Totsuka Country Club in 1985 from an unnamed business executive. Mori has used the membership to play golf about a dozen times over the past 16 years, they added.

Mori had been under fire for continuing a golf game at the club for more than two hours after hearing that a U.S. submarine hit a Japanese ship carrying 35 people off Hawaii last weekend.

Mori said Thursday morning at his Official Residence the membership was not a gift but an arrangement allowing him to use it anytime.

But Tetsuzo Fuyushiba, secretary general of New Komeito, called Mori's behavior "morally and ethically inappropriate.

"Generally speaking," Fuyushiba said, "what he did was not agreeable."

As criticism spread within various LDP factions, there was speculation the embattled leader may be forced to step down after the fiscal 2001 budget clears the Diet.

The government hopes to pass the budget before April 1, when the fiscal year begins.

Akihiko Kumashiro, an LDP vice secretary general and member of the faction led by Ryutaro Hashimoto, state minister in charge of administrative reform, said the party should revise its rules at a party convention in March to move up its presidential election.

"Mr. Mori should undergo the judgment of all party members in a presidential election," Kumashiro told reporters after the day's meeting of the Hashimoto faction. "Junior lawmakers should also run for the race and elect a president under open discussion prior to the decisive battle of the Upper House election in July."

Chief Cabinet Secretary Yasuo Fukuda later said the prime minister has decided to end the membership "arrangement" as it "causes misunderstanding."

The executive offered Mori the use of one of two memberships owned by his company, Mori's aides said, adding that the offer came after Mori had complained of back pain and was meant to help keep the prime minister in shape.

The aides contend that although the membership is registered in Mori's name, an agreement signed between the two in March 1985 stipulates the real owner is the company and the prime minister is merely borrowing it.

They said Mori paid his own green fees, the annual club membership fees of 50,000 yen and a 1.5 million yen fee to change the registration himself.

Tax authorities said golf course memberships given as gifts would attract a 60 percent gift tax based on 70 percent of the membership's market value.

If a membership is worth 40 million yen, then 60 percent of 28 million yen is taxable. After deductions, around 12 million yen should be due in gift tax.

Mori has not paid taxes on the membership and maintains his use of it causes no problems.

"I consulted with the owner, a tax bureau and a tax accountant and they said there are plenty of such examples," he said.

Fukuda also said there were no problems. "It is not an asset of (Mori's), so there is no way to impose a tax on it," he said.

In addition, the membership was not declared when Mori made public his assets as required for Cabinet members and House of Representatives lawmakers.

Mori said he had "no need" to declare the membership because it did not belong to him and tax experts had told him it was unnecessary.

Fukuda agreed there is no problem if Mori can prove the membership does not belong to him.

A secretary to Mori said Saturday was the first time in seven to eight years that Mori had played at the club.

The secretary declined to comment on whether the donor of the membership was playing when the collision occurred.

A plate displaying Mori's name has joined others at the 36-hole links in Yokohama's Asahi Ward.

The opposition bloc agreed Thursday that its lawmakers should submit a no-confidence motion against the Mori Cabinet over the golf course membership, as well as over his responsibility for a series of scandals involving mutual aid organization KSD and the Foreign Ministry.

The Democratic Party of Japan, the Liberal Party, the Japanese Communist Party and the Social Democratic Party said they would submit the motion at the most effective time during the ongoing 150-day Diet session.