Georgia's new economy minister resigns - TV

TBILISI, Nov 17 (Reuters) Georgia's Economy Minister Irakly Okruashvili resigned today just a week after he was named to the post by President Mikhail Saakashvili, Georgian television reported.

The 33-year-old Okruashvili had been a hawkish defence minister until Saakashvili switched him to the economy portfolio after 11 months in the job, in a move viewed as a softening of policy towards rebel separatists in South Ossetia.

''According to our information, Okruashvili resigned from the post of economic development minister,'' Rustavi-2 television reported. ''The information was circulated by his spokeswoman.'' South Ossetia, a region in the north of Georgia bordering the Caucasian mountains and Russia, voted 99 per cent in favour of independence in a referendum last Sunday that was declared illegal by Georgia. The West has backed Georgia but Russia has supported South Ossetia's independence drive.

Okruashvili had taken a tough line on South Ossetia, where he was born, and earlier this year even promised to toast the new year there.

He had also launched strong verbal assaults against Russia after relations plunged during a spy row.

Last week Saakashvili had praised Okruashvili as one of the best organisers and managers in his government and said he had shifted him across to the economy ministry to improve it.

REUTERS PDM BD1942