The leaders of the Democratic Party of Japan, Social Democratic Party and New People's Party (Kokumin Shinto) agreed Wednesday to form a coalition government. It will ensure that the DPJ, which holds fewer than half of the Upper House seats, has smooth sailing in the Diet. However, the parties appear to have papered over some difficult issues and the new administration may have a tough time.

During negotiations, the SDP called for revamping the U.S.-Japan agreement to move the U.S. Marine Corps Futenma Air Station to another part of Okinawa and for revising the U.S.-Japan Status of Forces Agreement. The DPJ opposed such a goal because of the problems it would cause DPJ leader Yukio Hatoyama, who, as Japan's next prime minister, will meet with U.S. President Barack Obama later this month.

The two parties finally agreed to adapt a sentence originally included in the DPJ's election manifesto by adding a reference to Okinawa. The agreement now says that the new administration will "propose revising the SOFA and take a stance toward reviewing the realignment plans for U.S. forces as well as the U.S. base situation in Japan with a view toward reducing the burdens on Okinawan residents."

As Kokumin Shinto demanded, the agreement mentions a drastic review of postal service privatization, but without details.

The DPJ rejected a call by the SDP to establish a mechanism for policy discussions among party policy chiefs. The DPJ insisted on concentrating policy-related decision making in the Cabinet. It was eventually agreed that the leaders of the three parties will coordinate views on policies in a Cabinet-level panel. But the relationship between this panel and the National Strategy Bureau to be created under the prime minister is unclear.

Since the agreement appears to contain the seeds of future friction, it is all the more important that each party in the coalition restrain itself and cooperate toward achieving their grand goals — ending bureaucracy-led politics and restructuring the economy.