Japan PM rules out early election despite troubles

SYDNEY, Sep 8 (Reuters) Japanese Prime Minister Shinzo Abe, hit by scandals in his cabinet, today dismissed speculation that he would call a snap election despite facing an uphill battle in a forthcoming session of parliament.

With his farm minister, Takehiko Endo, resigning on Monday after only a week in the job, financial market players are worried about political uncertainty, including the possibility of a snap poll for the powerful lower house.

But Abe, in Sydney to attend an Asia-Pacific leaders' summit, said he had no plan to call an early election.

''I don't have any intention of doing so at the moment,'' he told reporters when asked if would dissolve the lower house.

Abe faces a tough time passing legislation in a parliament session starting next week after his ruling bloc upset voters with gaffes and scandals by cabinet ministers and lost its majority in an upper house election in July.

Pledging to press on with reforms, Abe revamped his cabinet last month but the new farm minister soon quit over illegal dealings at a farmers group he headed, and other ministers have revealed mistakes in political fund reports.

Abe's internal affairs minister admitted today his supporters had misreported a 1 million yen (8,800 dollar) political donation.

''This is a big mistake. I'm deeply ashamed as my supervision was not enough,'' Hiroya Masuda told a news conference.

NAVAL MISSION The scandals are likely to be a prime target for the resurgent opposition in parliament, where Abe will struggle to push through a law to extend Japan's naval mission in support of US-led operations in Afghanistan beyond a November. 1 deadline.

The leader of the main opposition Democratic Party, Ichiro Ozawa, has been against extending the law, although policy experts say the possible suspension of the mission risks souring Japan's security ties with the United States.

White House Deputy National Security Adviser Jim Jeffrey said on Saturday that Japan's mission was essential to the global war on terror and hoped that opposition parties would rethink plans to block the legislation.

''We would be very, very concerned'' if the refuelling operations were to stop, he told reporters following a session of the Asia Pacific Economic Cooperation (APEC) summit.

Abe said the naval mission was ''a commitment to the international community rather than a commitment to the United States, and in that sense I have a big responsibility on this issue.

''I must do my utmost to make good on my promise,'' he said.

REUTERS LPB PM1900