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Keidanren Asks DA Ease Arms Export Principles

Tokyo MAINICHI SHIMBUN
3 Jun 95 Evening Edition p 1

[passage omitted]

The declining defense industries of the world have been paying much attention to a project -- the "Theater Missile Defense (TMD)" concept. Research and development is underway on this project, aiming at deployment in the beginning of the 21st century. MITI Doubtful about Winning Public Support for the Project [Subhead]

Following the U.S. proposal for a defense system to use interceptor missiles to strike down ballistic missiles, Europe has started to jointly develop the "MEADS" intermediate-range ballistic missile with the United States since last February. This project is very attractive to the Japanese defense industry, which has advanced technology that can be used for the development of arms.

However, since the United States and European nations are cooperating, there is little room for Japan to join the project. There is little hope for Japan since it is strongly voiced in the United States that "production under license which may lead to a drain of technology should not be allowed." An Indication of the real motive of Japan's defense industry is this remark by a defense source: "Right now, the United States is calling for Japan's cooperation at the research stage. If we fail to be involved now, we will be excluded from the project."

Some think that this is good timing while the Social Democratic Party of Japan is in the ruling camp.

While the defense industry is calling for easing the principles on prohibiting arms export, the Defense Agency and the Ministry of International Trade and Industry [MITI], which is in charge of export control, take a negative stance. The DA says that "the decision to deploy the TMD has not been made," and MITI says "It is difficult to change the current system. We doubt whether the public will support this."

Supporting the policy of easing the principles on prohibiting arms export, Director Seiki Nishihiro of the Research Institute for Peace and Security, who once served as DA vice minister gives his candid advice to the defense industry, saying: "Japan's defense industry also needs large-scale integration and reorganization. In particular, aircraft production divisions, which are founded in five or six companies, should be combined into one."