Japan grapples with U.S. base plan before Obama visit

By Isabel Reynolds

TOKYO (Reuters) - Japan struggled with the touchy issue of reorganising U.S. military bases on the southern island of Okinawa on Wednesday, just a week ahead of U.S. President Barack Obama's first visit to Japan as leader.

Foreign Minister Katsuya Okada cancelled a last-minute trip to Washington meant to smooth ties ruffled by a feud over bases, blaming his busy schedule, while Prime Minister Yukio Hatoyama came under fire in parliament for his handling of the relationship, the core of security arrangements in the region.

U.S. Assistant Secretary of State Kurt Campbell was due to meet Okada on Thursday, but it remained unclear whether a way could be found to keep the feud from spoiling Obama's visit.

Hatoyama, in office for less than two months, has pledged to build a more equal relationship with the United States and review bilateral security agreements, sparking concern among investors about the alliance.

He said before his August election victory that the Futenma U.S. Marine base should be moved off the island, an idea supported by 70 percent of Okinawa residents in a poll published this week by the Mainichi Shimbun and local paper Ryukyu Shinpo.

But Washington wants to push ahead with a 2006 plan to relocate it in a less heavily populated part of Okinawa.

Okada spelled out the dilemma facing the new government.

"We think that it is necessary to move things forward while accepting the feelings of the people in Okinawa," he said in response to a question in parliament.