Hatoyama said his management body's alleged false reporting of his political fund has also tainted the image of DPJ, another factor to his decision of resignation.
"We should try to rebuild a clean DPJ so that our people will listen to us," Hatoyama said.
"The government's work has not reflected the public's wishes," the premier said.
"Because of the Futenma issue, I lost trust of my people," Hatoyama said in tears, while adding "I have been and will continue to make efforts (to move the U.S. military facility out of Okinawa)."
"I don't believe in the next 50 or 100 years Japan will still rely on the United States for defense...although the Japan-U.S. alliance is important for the time being," he said.