It would be able to borrow money, with a government guarantee, either from the Bank of Japan or from the finance ministry's trust-fund bureau, which manages postal-savings money.
But privatising the postal savings and insurance business was seen as the best way to wrestle these vast funds away from the finance ministry's Trust Fund Bureau.
Mr Snow is due to have talks with Japanese Finance Minister Sadakazu Tanigaki on Monday night to discuss the country's reform agenda, including privatising the postal system.