Japan and Canada agreed Thursday that the Group of Eight leaders must address the concerns of developing nations during their summit in Okinawa in July, a Japanese official said. Prime Minister Yoshiro Mori and his Canadian counterpart, Jean Chretien, discussed the agenda of the July 21-23 summit in a meeting in Ottawa, and Mori gave Chretien a brief rundown on the shape of the Japanese economy, the official said.

"There is a possibility that (the summit) would invite criticism from developing nations if (their concerns) are not addressed," the official quoted Chretien as saying.

Chretien said the G8 summit should discuss poverty and health issues.

Mori said the G8 leaders should also listen to the opinions of international organizations and nongovernmental organizations.

On the Japanese economy, Mori told Chretien that he is confident Japan will achieve positive growth in fiscal 1999, which ended March 31, but the government will not shift to fiscal austerity until a genuine rebound is under way.

"I think there is still a need for the government to support the economy," Mori said.

Mori also discussed Japan's employment situation, telling Chretien that there is a mismatch in demand and supply of labor in Japan's information technology sector, but added that he expected the issue to be resolved in time.

Chretien told Mori that the problem may be rectified if Japan further deregulates its telecommunications sector. Chretien did not elaborate, a Japanese official said.