The resignation of Internal Affairs and Communications Minister Kunio Hatoyama last week is yet another indication of Prime Minister Taro Aso's lack of leadership. More than a month before, Mr. Hatoyama had said during Diet deliberations that he was against retaining Mr. Yoshifumi Nishikawa as president of Japan Post Holding Co. (His denunciation of Japan Post's decision to sell 70 Kampo no Yado inns and nine housing facilities to a subsidiary of leasing company Orix Corp. for a mere ¥10.9 billion scuttled the deal.) He then escalated his rhetoric in public against retaining Mr. Nishikawa as Japan Post president, giving the impression that the Cabinet was in a state of confusion. Mr. Aso could and should have taken some action against Mr. Hatoyama or Mr. Nishikawa earlier.

Mr. Hatoyama had the authority to rescind Japan Post's expected decision to retain Mr. Nishikawa as president at a June 29 shareholders' meeting. As late as June 12, Mr. Aso urged Mr. Hatoyama to accept the retention of Mr. Nishikawa in exchange for apologies from Mr. Nishikawa. Rejecting Mr. Aso's call, Mr. Hatoyama tendered his resignation.

For Mr. Aso, this means the loss of a close political ally who had led a group of Liberal Democratic Party lawmakers in support of him in the LDP presidential election. Mr. Hatoyama is the third Aso Cabinet member to resign. Infrastructure minister Nariaki Nakayama quit in September 2008 and Finance Minister Shoichi Nakagawa, in February 2009.

Behind Mr. Hatoyama's resignation are some LDP lawmakers' opposition to postal service privatization and public sentiment that privatization has not been beneficial. A Kyodo News poll shows that 74.8 percent of those surveyed do not support Mr. Aso's virtual dismissal of Mr. Hatoyama and that 75.5 percent think Mr. Nishikawa should resign. The government, Japan Post's sole shareholder, must ascertain whether the firm has been rendering services that people want. It also must ensure transparency in the firm's operations. More important, Mr. Aso should make clear how he will handle Japan Post.