Chapter II.
Sectoral Analysis of the International Situation and Japan's Foreign Policy

Section 1.
Ensuring peace and stability

A. Ensuring the security of Japan

1. Overview-the three main pillars of Japan's security policy

There remain various uncertain factors in the post-Cold War international community. The Asia-Pacific region, where Japan is situated, was not immune either in 1998, with potential causes of regional instability-the nuclear tests conducted by India and Pakistan and the missile launch by North Korea, for example-becoming far more real and new uncertainties emerging.

Given this security environment, Japan embraces a security policy with three main pillars: firmly maintaining the Japan-U.S. Security Arrangements, building up Japan's defense capability on an appropriate scale and making active diplomatic efforts to ensure international peace and security.

The Japan-U.S. Security Arrangements are explained in detail in the next section.

Under its Constitution, Japan has moderately built up its defense capability in accordance with the fundamental principles of maintaining an exclusively defense-oriented policy and not becoming a military power that might pose a threat to other countries. Based on these principles, developments to date include a review for the first time in 19 years in November 1995 of the National Defense Program Outline, adopted by the National Defense Council and the Cabinet on 29 October 1976, and adoption by the Security Council and the Cabinet of the National Defense Program Outline in and after FY1996 (hereinafter, the New National Defense Program Outline).

With ever-increasing interdependence in the international community, the stability and prosperity of Japan is inevitably linked to the peace and prosperity of the Asia-Pacific region and of the world. From this perspective, in order to ensure Japan's security as well as regional peace and stability, efforts must be made at various levels while maintaining the U.S. military presence, namely: (1) efforts toward the resolution of individual conflicts and confrontations, and bilateral and multilateral dialogues and cooperation toward regional stability; (2) political and security-related dialogues and cooperation toward increasing the policy transparency of the Asia-Pacific countries and building confidence among them; and (3) the achievement of greater regional political stability through support and cooperation in the economic development of countries in the region.

In addition to the above, it is also important from the perspective of contributing to the peace and stability of the world to strengthen arms control, disarmament and the non-proliferation regime, to make efforts in all aspects related to conflicts, including conflict prevention and peacekeeping operations (PKO), and to engage in security-related dialogues and cooperation with Europe, and Japan must continue to work actively in regard to all these areas.

2. The Japan-U.S. Security Arrangements

a) Significance of the Japan-U.S. Security Arrangements

As noted in the Japan-U.S. Joint Declaration on Security, issued by the Japanese and U.S. top leaders in April 1996, the Japan-U.S. Security Arrangements not only secure the U.S. presence and involvement in the Asia-Pacific, a region where instability and uncertainty still exist, but also form a political foundation for wide-ranging Japan-U.S. cooperative relations in the international community.

At a Japan-U.S. Security Consultative Committee (the SCC, or "2+2") meeting on 20 September 1998 and the Japan-U.S. Summit on 22 September, both sides reaffirmed their abiding commitment to the Japan-U.S. Security Arrangements, and reiterated in particular the shared perception of Japan and the United States that the North Korean missile launch on 31 August was a major threat to the security of both countries and to the region.

b) Ensuring the effectiveness of the Guidelines for Japan-U.S. Defense Cooperation

The Guidelines for Japan-U.S. Defense Cooperation (hereinafter, the "Guidelines") which were released in September 1997 were aimed at creating a solid basis for more effective and credible Japan-U.S. cooperation under normal circumstances and during contingencies. Based on the September 1997 Cabinet Decision on ensuring the effectiveness of the Guidelines, the Government worked on the construction of domestic mechanisms to this end, including legal aspects, resulting in the April 1998 submission to the Diet of: (1) a draft Law Relating to Measures for Preserving the Peace and Security of Japan in the Event of a Situation in the Areas Surrounding Japan; (2) a bill to amend the Self-Defense Forces Law; and (3) an Agreement amending the Agreement between the Government of Japan and the Government of the United States of America concerning Reciprocal Provision of Logistic Support, Supplies and Services between the Self-Defense Forces of Japan and the Armed Forces of the United States of America (the so-called ACSA).

In addition, ensuring the effectiveness of the Guidelines and effectively advancing Japan-U.S. defense cooperation under the Guidelines will require, under normal circumstances, bilateral work including bilateral defense planning in case of an armed attack against Japan and mutual cooperation planning in case of situations in areas surrounding Japan. At a meeting of the Sub-Committee for Defense Cooperation, held 20 January 1998, and talks the same day held among U.S. Secretary of Defense William Cohen, Foreign Minister Obuchi and Director-General Fumio Kyuma of the Defense Agency, both sides agreed to establish a comprehensive mechanism for this work. Based on this mechanism, Japan-U.S. bilateral work, such as bilateral work for planning and the establishment of common standards and procedures, is currently underway being undertaken by both countries' defense authorities.

c) Japan-U.S. cooperation on defense technology

Further development of defense technology exchanges between Japan and the United States is an important task for ensuring the effective operation of the Japan-U.S. Security Arrangements. Cooperative research or improvement work is currently underway on ducted rocket engines, advanced steel technologies, fighting vehicle propulsion technologies using ceramic materials, eye-safe laser radars, the ACESII ejection seat, and advanced hybrid propulsion technologies.

Since the end of the Cold War, weapons of mass destruction (nuclear weapons, for example) and ballistic missiles have proliferated, and ballistic missile defense (BMD) has become an important task in Japan's exclusively defense-oriented policy. At the "2+2" meeting held in New York on 20 September 1998, the relevant Japanese and U.S. ministers stated that they would proceed with further work in the direction of conducting cooperative research and development. Considerations were undertaken to this end, and on 25 December, with the approval of the Security Council of Japan, the Government decided to launch cooperative research with the United States as of FY1999, focusing on the Navy's Theater-Wide Defense (NTWD) system.

d) Issues involving U.S. forces stationed in Japan

How to minimize the impact of U.S. forces' activities in Japan on residents living in the vicinity of U.S. facilities and areas is an important issue for ensuring smooth operation of the Japan-U.S. Security Arrangements. The U.S. side, too, is well aware that the understanding and support of these residents is a vital element in stationing U.S. forces in Japan, and the FY1998 East Asia Strategy Report (EASR) released by the U.S. Department of Defense on 23 November announced that a U.S. military presence of around 100,000 would be maintained in the Asia-Pacific region, and also referred to the importance of locally stationed U.S. forces building "good neighbor" relations with local residents. Based on this, Japan and the United States are cooperating closely in implementing various measures to facilitate the activities of U.S. forces stationed in Japan and to reduce the various impacts on local communities.

In particular, recognizing the vital importance of reducing the burden on the people of Okinawa, where U.S. facilities and areas are highly concentrated, the Japanese and U.S. Governments have thrown their weight behind the early and steady implementation of the Final Report of the Special Action Committee on Okinawa (SACO) in December 1996, and have already produced results on a number of matters. In 1998, steady progress was made in implementing the SACO Final Report, including work on construction of noise reduction baffles at Kadena Air Base and return of the Aha Training Area.

With regard to the return of the Futenma Air Station, as the SACO Final Report stipulates the construction of a sea-based facility as a replacement facility, the government designed and presented to local residents a basic proposal on the Sea-Based Facility (SBF). However, Governor Masahide Ota announced rejection of this proposal in February 1998. The Government is working toward resolution of this issue with the understanding and cooperation of the people of Okinawa, paying close attention to the views of Governor Keiichi Inamine, winner of the 15 November 1998 Okinawa gubernatorial election.

Attaching importance to the steady implementation of the SACO Final Report, Governor Inamine has been working on the U.S. bases issue, establishing the "Futenma Air Station and Naha Port Reversion Affairs Office" on 1 March 1999. To support the Okinawan project team on this issue, the Government put together a governmental support group on 2 March. Since then, some municipalities in Okinawa have announced their readiness to provide sites for transferred facilities.

Looking to resolve the various issues related to U.S. bases in Okinawa and to alleviate the economic and social burden created by them, and bearing in mind the many years of history involved, as well as the regional disparities which have emerged as a result, the Government has been working on socioeconomic promotion in Okinawa. Recently, following the election of Governor Inamine, the Consultative Committee on Promotion of Economic Policies Concerning Okinawa, established in September 1996 to listen to and discuss Okinawan wishes in regard to stimulation and development of Okinawa, was reopened for the first time in around a year, with meetings held in Tokyo on 11 December 1998 and 29 January 1999.

3. Efforts toward regional confidence-building

Efforts toward confidence-building among the countries of the Asia-Pacific are crucial in reducing uncertainty in terms of regional security. The basis for such confidence-building is the awareness and confirmation of each country's intentions through frequent contacts and communication among the concerned officials and people of the countries in the region, and of each country's capabilities through increasing transparency concerning military and defense strength. In 1998, Japan developed closer intra-regional dialogues through sustained summit diplomacy with the major regional powers, including ROK President Kim Dae Jung's visit to Japan, Prime Minister Obuchi's visit to the Russian Federation, and visits to Japan by U.S. President Clinton and PRC President Jiang Zemin. Japan also worked on building intra-regional confidence through, for example, the ASEAN Regional Forum (ARF), a forum for region-wide political and security-related dialogues and cooperation in the Asia-Pacific. On top of these efforts, Japan has recently been promoting security- and defense-related dialogues with countries such as the People's Republic of China, Indonesia and Thailand, with the first-ever security dialogue with the Republic of Korea conducted in June 1998. Other forms of multilateral cooperation in the region include cooperation spearheaded by Japan, the United States and the ROK to contain North Korean nuclear weapon development and the Four-Party Meeting, the members of which comprise the Republic of Korea, the United States, the People's Republic of China and North Korea, but it will be important from a medium- to long-term perspective to continue to explore appropriate frameworks for discussing the stabilization of Northeast Asia.

At the Second ARF Ministerial Meeting in 1995, participants agreed that the following three-step evolutionary approach should be taken toward achieving ARF objectives: (1) promotion of confidence-building; (2) development of preventative diplomacy; and (3) elaboration of approaches to conflicts. In addition, in order to consider the concrete measures which should be implemented, participants agreed to hold working-level meetings in the three areas of confidence-building, peacekeeping operations and search-and-rescue activities; these meetings have been held in succession since January 1996.

In 1998, confidence-building measures such as a meeting of heads of national defense academies and research institutes and a seminar on the creation of a national defense policy paper were implemented, with ARF activities demonstrating further evolution. At the Fifth ARF Ministerial Meeting in Manila in July, a frank and lively exchange of views took place on the regional situation, including the security implication of the Asian economic crisis, the Myanmar situation and the situation in Cambodia. In particular, at the initiative of the Chair, the Chairman's Statement issued at this meeting expressed grave concern over and strongly deplored the nuclear tests conducted by India and Pakistan, which was a groundbreaking event given that one of the parties involved, India, was also an ARF participant, as well as the consensus-based nature of ARF decision-making.

To improve the security environment in the Asia-Pacific, ARF members must continue to develop and strengthen bilateral and multilateral dialogue frameworks on a number of levels. Given that the Asia-Pacific region is extremely diverse in terms of levels of economic development and political and economic systems, security cooperation in this region is expected to make incremental progress, and continued efforts from all countries will be needed for the achievement of long-term regional stability.

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