Prime Minister Junichiro Koizumi reiterated his resolve Monday to send Ground Self-Defense Force troops to Iraq to help in the country's reconstruction, despite the repeated attacks there believed carried out by insurgents and terrorist elements.

"Without stability in the Middle East, there will be no peace or stability in the world," Koizumi said in his New Year's speech at his office. "We'd like to continue assistance (for the Iraqi people) from that viewpoint."

Diplomatic issues appear to occupy Koizumi's mind. Of the 13-minute speech, he spent the first five solely on diplomatic issues related to Iraq and North Korea.

Political observers say, however, that should an attack claim any members of the Self-Defense Forces, this could deal a fatal blow to the Koizumi administration.

Koizumi underscored that the government is committed to ensuring the troops' safety. "It is the government's responsibility to make efforts to avoid dangerous situations," he said.

Koizumi cited the abductions of Japanese nationals by North Korean agents and Pyongyang's nuclear threat as major diplomatic issues for Japan, adding that he will not separate the two in negotiations with the country.

As for domestic issues, Koizumi said some signs of economic recovery are finally emerging and ruled out pump-priming measures focused on public works.

Koizumi claimed more stimulus measures would only require more government bonds to be issued and taxes to be hiked, which he says is unacceptable given Japan's growing fiscal debt and still-shaky economy.