Wednesday, September 01, 2004
Japan to boost spending on missile defence
* Tokyo to sign defence contracts worth 144.2 billion yen
TOKYO: Japan's defence ministry said on Tuesday it wants to boost spending on missile defence while cutting funds for tanks and ships in a budget request made ahead of a major overhaul of the country's defence strategy.
The spending plans and the strategic review due this year are aimed at improving the country's defence against threats such as terrorist and missile attacks while scaling back spending on traditional military equipment.
The ministry is looking for 4.93 trillion yen ($44.8 billion) for the fiscal year starting next April, up 1.2 percent from 4.88 trillion yen this year.
In line with the government's decision in December to buy a US-made missile shield, the ministry said it wanted to sign missile defence contracts next year worth 144.2 billion yen, up from 106.8 billion yen this year. Outlays would be spread over a number of years, beginning in 2005/06.
The ministry wants to equip a second Aegis destroyer for missile defence and buy Standard Missile-3 (SM-3) missiles, and plans to conduct an SM-3 launch test, expected to be held in 2007/08, possibly off Hawaii.
There are also plans for a test of a next-generation interceptor missile, now being developed by Japan and the United States for missile defence, off Hawaii next fiscal year, a ministry official said.
The ministry also wants to buy ground-to-air Patriot-3 missiles and continue upgrades related to missile defence to a PAC-2 system already being used by the military.
It estimates that the missile defence system, expected to be partially deployed from 2007, could end up costing around 800 billion yen to 1.0 trillion yen, the official said.
The ministry is also seeking 247.9 billion yen next year to improve communications systems, up from 150.8 billion yen this year. It is seeking hardware such as radar to help monitor coastal areas and wants funds to develop a new scouting vehicle capable of detecting radiation as well as chemical and biological agents.
In contrast, it said it would scale down spending on traditional military equipment.
It is seeking 37.1 billion yen for tanks and artillery, the lowest amount since Japan began compiling five-year plans for military procurement in 1986. In addition, the navy will not purchase any destroyers next year for the first time in the postwar era, the ministry said. The budget will be finalised by the end of the year after consultations with the Ministry of Finance and then has to be approved by parliament. reuters
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