Japanese Prime Minister Yasuo Fukuda made his policy speech Friday afternoon at the first plenary session of the Diet's new regular session, during which he vowed to boost the mutually beneficial ties based on common strategic interests with China.

Japan will seek to strengthen ties with China through cooperation on such fields as energy-saving and environment- protection, and make efforts to build a Japan-China relationship which contributes to stability and development of Asia and the world, Fukuda said.

On the Korean Peninsula nuclear issue, Fukuda pledges to continue cooperation with other parties in the framework of the six-party talks for the Democratic People's Republic of Korea's abandoning of its nuclear ability and projects.

He also expressed his willingness to construct a future- oriented and stable relationship with South Korea, and upgrade the Japan-Russia relationship to a new phase.

About Japan's overall diplomatic strategy, the premier reiterated that the Japan-U.S. ally is the axle of Japan's foreign policy.

Japan will continue to play an active role in world campaigns against terrorism and global warming based on the alliance with the United States and international cooperation.

He said it's necessary for Japan to expand diplomatic activities and seek a permanent membership in the UN security council for the implementation of its role as a "peaceful and cooperative nation."

Fukuda underscored his ambition to lead the world in efforts to cut greenhouse gas emission with Japan's advanced technology on clean energy and energy efficiency.

He boasted Japan's highest energy efficiency in the world, and proposed a "low-carbon society" to set up a model for the world.

Fukuda said his government plans to establish a "financial mechanism" to encourage developing countries to adopt measures against global warming.

As the host of the G-8 summit in July, Japan will make utmost efforts in the long run to cut 50 percent of its greenhouse emission by 2050, and push for the establishment of a new effective anti-global warming framework involving major emitters, Fukuda said.

On defense policy, Fukuda prioritized the creation of a permanent law authorizing the government to dispatch the Self- Defense Forces into overseas missions without approval of the parliament.

On domestic affairs, the premier said he will struggle to further improve the transparency of political funds and restore the public trust in politics. He also pledged to reform the civil servant system to win back people's trust in the administration.