Prime Minister Yasuo Fukuda vowed to tackle pressing issues like surging oil prices and participation in the "war on terrorism" as his new Cabinet was officially launched at an attestation ceremony at the Imperial Palace on Saturday.

"I will give everything I've got in building a government that puts itself in the people's shoes, a foundation in which people can live without worry, and an economic society in which the people can feel affluence," Fukuda said in a statement. "And at the same time I will do my best to contribute to the peace and stability of the world and resolve the global environmental issues."

On diplomacy, Fukuda stressed the importance of a strong Japanese-U.S. alliance but also vowed to create an open relationship to work "together" with Asia-Pacific countries.