In a rare show of Japanese diplomatic initiative, Prime Minister Keizo Obuchi lobbied for Sakakibara - known as "Mr Yen" for his former sway over currency markets - at a weekend meeting of 13 Asian leaders in the Philippine capital and appeared to win strong backing.

The 10-member Association of South East Asian Nations (Asean) threw its support behind Sakakibara, and South Korean President Kim Dae-jung said Seoul would back the former vice finance Minister if he decided to run to succeed IMF Managing Director Michel Camdessus. Camdessus said earlier this month that he would be stepping down in February after 13 years in the job and that his successor need not necessarily be a European. By convention, the United States chooses the head of theWorld Bank and the IMF job isWestern Europe's patch, and analysts said Japan would have a tough task to win the post.

Sakakibara, speaking on television on Sunday, said he had not been formally approached on the candidacy but that various discussions were going on behind the scenes. Japan has led a chorus of Asian criticism of the IMF's initial handling of the Financial crisis which hit the region from mid-1997.

Critics blamed the IMF for exacerbating the crisis with its insistence on austere economic policies in return for Financial assistance. One Japanese official said Asia's strong support for Sakakibara's candidacy reflected its dissatisfaction with the IMF. "It's very much linked to the criticism of the IMF that emerged two years ago when the region was hit by the economic crisis," said the official, who declined to be identified.

"We must change the view that by default the IMF managingdirector should be a European," he added. An ASEAN official echoed that sentiment and said Asia neededto cooperate more closely or facecontinued dominance by the West. "If we don'T get our act together, they are going to walk all over us economically," the official said.

The 13 Asian nations - the ASEAN countries plus Japan, SouthKorea and China - on Sunday promised to strengthen economic and political ties to help bring peace, stability and prosperity to Asia. Officials gathered in Manila said an Asian IMF Chief might beable to change policies which they see as dominated by the West, in particular the United States.