TOKYO, Sept 12 - Japanese banking czar Heizo Takenaka was mum on Friday about mounting speculation he may lose his financial services portfolio but remain economics minister after a possible cabinet reshuffle. The Yomiuri Shimbun daily quoted political sources on Friday as saying Japanese Prime Minister Junichiro Koizumi hoped to keep Takenaka in his cabinet if reelected in a party leadership race next week, but may relieve him of his bank policy post. "Personnel issues are left to those in charge. I have nothing to say," Takenaka told a regular news conference. There has been speculation that Takenaka would be dropped from the cabinet because many conservative members of the ruling party consider his reforms to be too harsh.
However, Koizumi believes Takenaka should stay in his cabinet to help continue and strengthen the prime minister's structural reform initiatives. Koizumi would like to see Takenaka retain the financial policy portfolio in addition to his post as state minister in charge of economic and fiscal policy, the Yomiuri said. If Koizumi is reelected president of the Liberal Democratic Party on September 20, he plans to reshuffle the cabinet and the party leadership the next day and hopes to complete the process on September 22, the newspaper said. Koizumi is also considering replacing Finance Minister Masajuro Shiokawa and Foreign Minister Yoriko Kawaguchi, the newspaper quoted the sources as saying.//