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Japan's newly-elected Prime Minister Shinzo Abe vowed Friday in his policy speech to improve relations of trust with China, South Korea, calling them "important neighbors."

Newly-elected Japanese Prime Minister Shinzo Abe (C) poses with his Foreign Minister Taro Aso (L) and other cabinet members during an official group photo at the premier's official residence in Tokyo September 26, 2006. [Reuters]

"China and South Korea are important neighbors, with which Japan has established unprecedentedly close relations in economic and other areas," Abe said in his first policy address to the parliament.

"It was extremely important, to Asia as well as to the international society, to strengthen trust with China and South Korea," said Japan's first premier born after World War II.

Japan has strained ties with its Asian neighbors largely due to its prime minister's visits to the war-linked Yasukuni Shrine, where top war criminals are honored.

"I think it is important for all sides to make efforts so we can have forward-looking and frank discussions," Abe added.

On Japan-U.S. alliance, Abe said that Japan will strengthen its relations of trust with the United States, which is the basis of their alliance. "The Cabinet will communicate with the White House regularly to strengthen the ties," he said.

The 52-year-old premier, who took office Tuesday, also pledged to advance steadily in implementing an agreed plan to reorganize the U.S. military presence in Japan.

In the diplomacy part of his speech, Abe also said that Japan will cooperate with the United States in solving the Korean Peninsula nuclear issue within the six-party talks frameworks.

The premier also touched on relations with Russia, the Association of Southeast Asian Nations (ASEAN), India and Australia as well as Iraq's reconstruction and Japan's aim to win a permanent seat in the United Nations Security Council.

The premier aimed to build a powerful premier's office. "I aim to reorganize and strengthen capabilities at the prime minister's office, so that it will be the control tower with strong political leadership and enable quick decision-making on national strategies regarding diplomacy and national security," Abe said.

On domestic issues, the new premier said he will place priority on rebuilding the state finances through cutting fiscal expenditure before considering tax hikes. He also mentioned plans to revitalize local economies and provide more economic opportunities for disadvantaged people and minimize disparities.

Abe said he wanted to have a legislation passed for revising Japan's pacifist Constitution. He also vowed to reform education, which included such measures as improving public schooling, requiring teachers to renew their licenses periodically to ensure qualifications, and have schools evaluated by third parties.