WASHINGTON, May 4: President Bill Clinton praised Japanese Prime Minister Keizo Obuchi for his efforts to revive Japan's moribund economy on Monday instead of reading him the riot act as US officials have for months, reports Reuters.

The US president adopted a markedly milder tone as he met Obuchi at the White House after months of strident US demands for quick steps to pull the world's second-largest economy out of its worst recession since World War II.

While their meeting focused on Japanese growth. Clinton and Obuchi also announced a fresh package to deregulate key sectors of the Japanese economy and reviewed the US-Japan military relationship. North Korea and the Kosovo conflict.

"The prime minister has been very aggressive on the economy over the last year and he deserves a lot of credit for

that." Clinton said at a joint news conference after their meeting. ,

Obuchi declared his "unwa-'ve.ring resolve" to revive Japan's economy and said that Clinton had not pressed him to take fresh fiscal measures to stimulate growth, a sensitive political issue in Japan where some politicians have demanded such new steps.

"Japan is swiftly and boldly taking every measure in order to address the difficulties we are facing and to achieve Japan's economic recovery," Obuchi said. 'We will pave a solid path for recovery within fiscal year 1999 and we will continue our effort with unwavering resolve to ensure positive growth."

Clinton offered encouragement. but no criticism.

"1 hope that these stimulus measures would remain intact — not new ones, but the ones on the books now would remain intact until the economy

clearly shows signs of sustained growth." he said. "Until lasting recovery is at hand, we hope Japan will use all available tools to restore solid growth."

Clinton rolled out the red carpet for Obuchi. Japan's first prime minister to make an official visit to the United States in 12 years, giving him a welcoming ceremony on the White House South Lawn complete with a fife-and-drum corps and a military honour guard.

A US official said Clinton took a gentler line on Japan's economy because Obuchi has enacted a series of reforms since he took office in July and because they do not want to complicate the process for him.

"He has recognised more than some others die severity of the economic problertis and he is taking 'Steps to deal with it," said one US official. 'We want him to do more but we don't want to undercut the progress that he's made there."