(U.S. Note)
 Tokyo, July 12, 1977

　Excellency,I have the honor to refer to the Mutual Defense Assistance Agreement between the United States of America and Japan signed at Tokyo on March 8, 1954, which provides, inter alia, that each Government will make available to the other such equipment, materials, services, or other assistance as the Government furnishing such assistance may authorize, in accordance with such detailed arrangement s as may be made between them.

　The representatives of the Government of the United States of America and the Government of Japan have held discussions on the program for the production and acquisition in Japan of the improved HAWK missile system (hereinafter referred to as "the System" ) necessary to enhance the air defense capability of Japan. The following is the understanding by the Government of the United States of America of the result s of the above -mentioned discussions

1. In accordance with the detailed arrangements to be concluded under paragraph 3 the Government of Japan will produce or acquire, and the Government of the United States of America will authorize the production or sale of the System.

2. The above-mentioned program will be carried out to the maximum feasible extent through the private industrial capabilities of Japan as supplemented by such capabilities in the United States of America. The program will be further implemented by direct sale by the Government of the United States of America to the Government of Japan.

3. The Present understanding will be implemented in accordance with the above-mentioned Mutual Defense Assistance Agreement and arrangement concluded thereunder, including the Agreement between the Government of the United States of America and the Government of Japan to Facilitate Interchange of Patent Rights and Technical Information for Purposes of Defense signed on March 22) 1956. The detailed arrangements to implement the present understanding will be concluded between representatives of the competent authorities of the two Governments.

4. Financial obligations or expenditures incurred by the Government of Japan under the present understanding and all arrangement s to be concluded hereunder will be subject to budget authorization pursuant to the constitutional provisions of Japan.

　I have the honor to propose that, if the above understanding is acceptable to the Government of Japan, the present Note and Your Excellency, s reply of acceptance shall be regarded as constituting an agreement between the two Government s which shall  enter into force on the date of the receipt by the Government of Japan of the written notification from the Government of the United States of America of the completion of necessary domestic procedures for the entry into force of such agreement. 

　I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

　(Signed) Michael J. Mansfield

　His Excellency
Iichiro Hatoyama
Minister for Foreign Affairs Tokyo

(Japanese Note)

　(Translation)
 Tokyo, July 12, 1977
 Excellency,I have the honor to acknowledge the receipt of Your Excellency's Note of today's date,which reads as follows:

"(U.S. Note)"

　I have the honor to confirm on behalf of my Government that the foregoing understanding is acceptable to the Government of Japan and to agree that Your Excellency's Note and to reply shall be regarded as constituting an agreement between the two Governments which shall enter into force on the date of the receipt by the Government of Japan of the written notification from the Government of the United States of America of the completion of necessary domestic procedures for the entry into force of such agreement.

　I avail myself of this opportunity to extend to Your Excellency the assurance of y highest consideration.

　(Signed) Iichiro Hatoyama
Minister for Foreign Affairs of Japan

　His Excellency
Michael J. Mansfield
Ambassador Extraordinary And Plenipotentiary of The United States of America in Japan