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Kan seeks that TEPCO compensate damage from unfounded radiation fears

Prime Minister Naoto Kan said Sunday that compensation to be paid by Tokyo Electric Power Co. for the nuclear crisis at its Fukushima Daiichi power plant should cover all damage including that caused by unfounded radiation fears.

Kan was speaking to reporters in Tokyo. A similar view was expressed earlier by Chief Cabinet Secretary Yukio Edano. An advisory panel under the Ministry of Education, Culture, Sports, Science and Technology is compiling guidelines on the coverage of such damages.

The panel did not include losses to the farm and fishery industries stemming from such fears in its initial guideline released in late April, but it plans to cover them in its next guideline if they are closely linked with the nuclear disaster, officials have said.

Meanwhile, Cabinet ministers who met this weekend to discuss the creation of a new entity to help Tokyo Electric, also known as TEPCO, pay the compensation decided to continue their talks on Monday or later, officials said.

The related Cabinet members held talks for the second straight day Sunday after agreeing Saturday to demand that TEPCO carry out further restructuring, such as reducing directors' remuneration and selling off assets, to secure funds for compensation payments over radiation leaks from the Fukushima Daiichi plant.

But they could not come to an agreement on the new body, which is expected to involve contributions of funds by TEPCO and eight other electric utilities that operate nuclear power plants, due to concern that the firms could resort to charging more for electricity to secure funds for the envisaged entity.

Under the plan, TEPCO would be required in principle to shoulder all of the compensation. But a special law is being eyed to create the new entity that would make up for any shortfall using contributions from the nuclear plant operators.

Since the tsunami caused by the March 11 earthquake crippled its nuclear reactors on March 11, the Fukushima Daiichi plant has been leaking radioactive substances, driving residents near the plant out of their homes and damaging the agriculture, livestock and fishery industries in the region amid fears of radioactive contamination.

(Distributed by Kyodo News on May 8, 2011)

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