Posts minister Toranosuke Katayama said Tuesday he will try to seek a compromise by the end of the year over the controversial issue of whether to liberalize the state-run postal services sector.

A study panel at the Public Management, Home Affairs, Posts and Telecommunications Ministry will soon compile an interim report that is expected to only ask for partial liberalization of postal services when a new public corporation takes over as planned in 2003.

Prime Minister Junichiro Koizumi, however, has been repeatedly demanding full liberalization of the postal services.

"I know the prime minister insists on the full liberalization. But there aren't many in the study panel who support this, and there are even fewer in the ruling Liberal Democratic Party," Katayama told reporters, adding he will consult with members of the panel and seek a compromise.

Katayama, however, said he will not spend too much time on the matter and he will go ahead with plans to submit related bills to the Diet early next year.