(Tentative Unofficial Translation)

V. Points of Note in Upgrading, Maintaining and Operating the Defense Capability

1. The following points should be noted in upgrading, maintaining and operating the defense capabilities in accordance with the outlines described in section IV including the structure of each of the Self Defense Forces. Decisions on major items in annual defense improvement programs will be submitted to the Security Council.

   (1) The upgrading, maintenance and operation of Japan's defense capability will be conducted in harmony with other national policies, taking into account, economic, fiscal and other situations. In light of the increasingly tight fiscal situation, special attention will be given to making appropriate budgetary allocations from a medium-and long-term perspective, so that Japan's defense capability can smoothly and thoroughly carry out its functions as a whole.

   (2) Necessary steps will be taken to promote the effective maintenance and improvement, as well as the smooth consolidation and reduction of defense facilities, with the close cooperation of relevant local governments, and to facilitate further harmonization with surrounding areas.

   (3) Equipment acquisition programs will be effectively implemented with overall consideration of such factors as speedy emergency resupply, easier education and training requirement and cost effectiveness, including future obligatory expenditures accompanying the introduction of equipment, and with special attention on developing a procurement and supply mechanism which helps reduce procurement costs.
   Attention will also be given to maintaining defense production and technology foundations through appropriate promotion of domestic productions.

   (4) Efforts will be made to enhance technical research and development that contributes to maintaining and improving the qualitative level of Japan's defense capability to keep up with technological advances.

2. If such an important change of situations occurs in the future that it is considered necessary to reexamine Japan's defense capability, another review will be initiated based on the circumstances at that time.