In a telephone conversation Wednesday with Prime Minister Ryutaro Hashimoto, U.S. President Bill Clinton welcomed the special tax cut plan of 2 trillion yen unveiled earlier in the day, government officials said.

Clinton phoned to commend Hashimoto for demonstrating remarkable leadership and said the decision will benefit not only Japan but Asia as a whole, according to the officials. Clinton also welcomed the Liberal Democratic Party's plan announced the previous day to issue government bonds worth 10 trillion yen to stabilize the nation's financial system, the officials said.

At a news conference later in the day, U.S. Ambassador Thomas Foley also lauded the 2 trillion yen tax cut, together with the financial stabilization measures announced by the LDP earlier in the week, as a "very positive" move. "We have consistently urged Japan to take the steps needed to fulfill its commitments to generate domestic-led growth, eliminate anticompetitive regulations, and produce a stronger and more dynamic financial system," Foley told the Japan National Press Club. "We welcome the announcements of this week, including the prime minister's statement this morning that he will soon submit to the Diet a proposal for a 2 trillion yen personal income tax cut," he said.

The economy's stability and prosperity are important not only for Japan, but for the region as a whole, Foley said.