JAPANESE DEFENSE EXPENDITURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900020073-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 16
• Document Creation Date: December 20, 2016
• Document Release Date: July 29, 2005
• Sequence Number: 73
• Publication Date: April 12, 1974
• Content Type: MF

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Coll !AL
25X1
CMq 06K S-0(00F91- 174
I?lEN'ORA11DU1 FOR:
12 April 1974
e en::e Intelligence Agency
SUBJECT : Japanese Defense Expenditures
The attached material is in response to your request
for information on recent Japanese defense expenditures.
Overall military spending has increased sharply in
recent years, and the dollar figures have been boosted
further by exchange rate adjustments (See Tables 1 and 2).
Present plans call for considerably more spending during
the current 5-year defense plan as shown in Attachment
A. Soaring equipment and personnel costs, however,
are cutting deeply into these budgets. Exacerbating
this situation is Tokyo's plan to increase its inventory
of domestically designed and developed equipment, the
costs of which are markedly higher than comparable
material available from abroad.
25X1
Attachments:
As stated
Distribution: (S-6088)
Original. & 1 - Addressee
1 -. D/OER P
(12 April 1974)
C0FIDI1TIAL
25X1-
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1
 (MILLION US DOLLARS)
1969 1970 1971
TABLE 1
JAPAN: MILITARY SPENDING IN FISCAL YEAR 1969 - 1973'
C7
C=
t=j
rn
Army
Navy
Air Force
Bases and Facilities
Other
TOTAL
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588.3
311.8
312.5
701.0 865.0
386.9 479.9
347.9 462.0
84.2 98.2 120.2
41.1 48.0 57. G
1343.9 1582.0 1984.7
1972
-10 9 8.7
622.1
622.0
230.2
76.7
2649.7
1973z
1372.5
788.4
8GG.1
295.6
11696
3439.2
iFiscal years begin 1 April of stated year. Spending for fiscal years .19G9-1970
converted at 360 yen = 1 US$; 1971 at 338 yen = 1 US$; 1972 at 302 yen = 1 U.33"?;
1973 at 272 yen = 1 US$.
`Based on 1973 budget request.
CIA/OER
12 April 1974
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TABLE II
LEEE ISE: EUDGE'T BY CATEGORY OF EXPENDITURE'
(MILLION US DOLLARS)
1972
19732
Personnel Costs
1395.2
1799.3
Salaries
1149.3
1492.5
Other
245.9
306.8
New Equipr:.ent
697.5
917.5
Land-based weapons
and vehicles
268.0
307.2
Aircraft
276.5
432.9
Vessels
115.5
132.7
Research and
Develop:: ent
37.5
44.7
Maintenance, Transport,
Etc.
326.8
426.8
Bases and Facilities
230.2
295.6
2649.7
3439.2
'For fiscal years beginning 1 April of stated year. Data
for fiscal year 1972 converted at 302 yen = 1 US$; 1973
at 272 yen = 1 US$.
2Based on 1973 budget request.
CIA/O-rR
12 April 1974
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UNCLASSIFIED
Japan's Fourth Five-Year Defense Plan
Japan Defense Agency
Foreword
In October 1972, the Government of Japan finally approved the Fourth Five.
Year Defense Plan, which is composed of the following three documents:
(1) Outline of the Fourth Five-Ye .r Defense Plan approved by the National
Defense Council on February 7, 1972, and by the Cabinet on February
8, 1972.
(2) Situation Assessment and Defense Concept approved by the National
Defense Council and the Cabinet on October 9, 1972.
Major Programs of the Fourth Five-Year Defense Plan approved by the
National Defense Council and the Cabinet on October 9, 1972.
The Fourth Defense Plan is a specific program designed to improve Japan's
defense capabilities over the five years from 1972 to 1976, with an estimated
total. outlay of approximately 4,630 billion yen (approximately 15 billion dollars).
Along with the Plan, a document entitled "Measures to improve Civilian Control"
was also adopted by the National Defense Council and the Cabinet on October 9,
1972.
The Plan was formulated by the Government on the principle that Japan's defense
capabilities should progressively be developed and took into account the changes in the
international situation, the economic outlook ahd other changes since the release of an-
earlier draft in April, 1971.
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!.,
Outline of the Fourth Five-Year Dcfense Plan (Fiscal Years 1972-1976) 2
1.
Keynote of National Defense
Japan's basic policy on national defense lies in the preservation of the
independence and peace cf our nation founded upon democratic principles in accordance
with the "Basic Polities for. National Defense"
(adopted by the National Defense
Coun. I and Cabinet on May 20, 1957); the full next is as follows:
"The objective of national defense is to prevent direct and indirect aggression,
and once invaded, to repel such aggression, thereby preserving the independence
and peace of Japan founded upon demc--ratic principles.
To achieve this objective, the Government of Japan hereby establishes the
following principles:
(1) To support the activities of the United Nations, and promote
international cooperation, thereby contributing to the realization of
world peace.
(2) To stabilize the public welfare and enhance the people's love for
county, thcrcby establishing the sound basis essential for Japan's
security.
(3) To develop progressively the effective defense capabilities necessary
for self-defense, with due regard to the nation's resources and the
prevailing domestic situation.
(4) To deal with external aggression on the basis of the Japan-U.S.
security arrangements pending more effective functioning of the
United Nations in future in deterring and repelling such aggression."
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For the purpose mentioned above, there must be developed foreign policies
designed to establish friendly, cooperative relations with neighboring countries and
to contribute to the relaxation of international tensions and such domestic policies
as are necessary for sound economic and social development, and along with these
policies, defense capabilities sufficient to deter aggression should be developed on
the basis of the Japn-United States security arrangements.
2. Plan's Objective
The objective of the plan is to provide an efficient defense force capable of
dealing effectively with aggression on a scale not greater than a localized war in which
conventional weapons are used. In order to achieve this objective progressively, the
Fourth Five-Year Defense Plan (JFY 1972-76) calls for a qualitative improvement and
strengthening of the Ground, Maritime and Air Self-Defense Forces on the basis of
the current levels. The Plan is also designed to enhance the morale of members of
the Self-Defense Forces and to build up strong highly efficient and well-trained units.
In this connection, the following points will be taken into consideration:
(1) In improving the nation's defenses, special emphasis should be placed on
strengthening defense capabilities in the sea areas around Japan and air-
defense capabilities over vital urban and industrial areas as well as on
various types of mobility.
(2) Consideration should be given to increasing the effectiveness of the co.
ordinpi.ed operations of the three Services by encouraging harmonious
cooperation among the Ground, Maritime and Air Self-Defense Forces.
(3) In order to secure the required manpower and to enhance morale,
various personnel programs, including improvement of conditions in
UN 1C L7S5W- I12
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the Self-Defense Forces, should be promoted.
(4) In order to enhance the efficiency of units and to improve defense
capabilities, education and training systems and the logistics support
structure should be improved.
(5) Technical research and development will be encouraged for the moderni-
zation of equipment and improvement of domestic technological levels.
Also, there will. be domestic production of equipment on a reasonable
scale so as to ensure that equipment necessary for the nation's defense
will be readily obtainable.
(6) Public relations activities and civil cooperation programs will be further
promoted with a view to ensuring national consensus and support
on national defense.
(7) In line with the reversion to Japan cf administrative rights over Okinawa,
the necessary Japan Self-Defense Forces units will be sent there to. take
charge of the defense of that area and to carry out rescue operations in
the event of natural disasters and other civil cooperation activities for
the benefit of the people.
The major goals of the Fourth Defense Plan are as follows:
(1) Ground Self-Defense Force:
- The authorized strength (uniformed officers and men) will be 180,000.
To improve mobility aod fire power, tanks, armored personnel carriers,
self-propelled guns, helicopters, etc., will be acquired or modernized.
Surface-to-air missile (SAM) unit-- will also be increased to strengthen the
air-defense capability.
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(2) Maritime Self-Defense Force:
To improve defense capabilities in the sea areas around Japan and the ability
to ensure the safety of the scalanes in those areas, various types of ships,
including destroyers and submarines, will be built or modernized. In
addition, anti-submarine aircraft and other tactical aircraft will be acquired.
(3) Air Self-Dcfense Force:
To strengthen the air defense capability over vital urban and industrial
areas, the number of SAM units will be increased and fighter interceptor
wings will be improved qualitatively. Aircraft control and warning (AC&W)
capabilities will be improved. Also, replacement and modernization of
various types of aircraft will be promoted through the introduction of new
models of reconnaissance aircraft, advanced trainers and transport aircraft.
(4) Technical Research and Development:
Research and development will be conducted in such fields as various types
of guided missiles and electronic and related equipment in order to improve
anti-submarine patrol and early warning capabilities. The infrastructure for
technical zesearch and deve!opmcat will also be improved.
The Fourth Five.-Year Defense Plan will be carried out in harmony with
other national policies. Defense appropriations for each fiscal year will be
determined with due regard to the prevailing economic and financial condi-
tions and in proper balance with other general policies of the Government.
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11. Situation Assessment and Defense Concept I
The recent international situation indicates a shift irom the severe East-West
confrontation of the past to a general trend towards multipolarization. In this period
of transition, we can even see a tendency towards the relaxation of tensions. Such
a tendency may be seen in the latest developments in United States-China and United
States-Soviet relations, and in the progres3 of East-West negotiations in Europe. On
the Asian scene, too, progress is being. observed in the dialogue between the two
countries in the Korean Peninsula. Also, in our view, the normalization of Japan-China
diplomatic relations will contribute to the relaxation of tensions in Asia.
In the Asian region, however, the interests of the three big powers - the United
States, the Soviet Union and the People's Republic of China - continue to be
intricately intertwined, and in our assessment, a stable state of detente has not been
established in the area as a whole. Among other nations of the world, too, there still
exist a variety of factors making for tension. In these circumstances, we find that the
probability of the outbreak of a total war or a large-scale armed conflict which might
escalate into a total war has fi'rthcr diminished. However, we cannot rule out the
possibility of the outbreak of armed conflicts, limited regionally or in duration.
2. Concept of Defense
The keynote of our country's defense lies in deterring aggression by posses-,ing
effective defense capabilities of our own, while ;aaintaining the existing security
arrangements with the United States. Against nuclear threats we will rely on the
nuclear deterrent of the United States.
UJ.SSRED
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In the event of an invasion being launched against Japan, our country will
counter indirect aggression and repel a small-scale direct aggression by our own efforts,
and in the case of an armed aggression beyond such a scale, we will counter it
with the cooperation of the United States.
W. Major Programs of the Fourth Five-Year Defense Plan
The major programs of the Fourth Defense Plan are as follows:
1. Ground Self-Defense Force
To improve mobility and fire power, the following items will be
280 Tanks (including 160 of newer type)
170 Armored Personnel Carriers
90 Self-Propelled Guns
(including 136 of newer type)
squired:
159 Tactical Aircraft, 154 of which will be Helicopters
Also, to strengthen the air-defense capability, three additional groups equipped with
Surface-to-Air Guided Missiles (HAWK) will be created.
Tc improve defense capabilities in the sea areas around Japan and the ability
to ensure the safety of the scalancs in those areas, fifty-four vessels, totalling
approximately 69,600 tons, will be built, including:
13 Destroyers (including 2 Destroyers equipped with Helicopters, a Destroyer
equipped with SAM and a Destroyer equipped with SSM)
RED
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UNCLASSIFIED
5 Submarines
1 Fleet Support Ship
Also, 92 Tactical Aircraft, including 87 Anti-Submarine Aircraft, will be acquired.
3. Air Self-Defense Force
To strengthen the air-defense capability, two additional groups of SAM units
equipped with NIKE -j batteries (non-nuclear configuration) will be created and
preparations will be made to organize one more group. In addition, 46 Fighter
Interceptors (F4EJ) will be acquired and the aircraft control and warning capability
will be improved.
At the same time, replacement and modernization of aircraft will be promoted
by acquiring 14 Reconnaissance Aircraft (RF4E), 59 Advanced Trainers (T-2), 68
Support Fighters (FS-T2 modified type) and 24 Transport Aircraft (C-1).
4. Technical Research and Development
U jj C, r, , , ~r
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Research and development will be conducted in such fields as various types of
guided missiles including ASM, and electronic and related equipment to improve
anti-submarine patrol and early warning capabilities.
5. Cooperation in Civil Activities
With a view to ensuring broader national consensus and support on national
defense, capabilities of local units for civil engineering works will be improved so
as to enable the Self-Defense Forces to actively carry out rescue operations in
the event of natural disasters and other activities for the benefit of the people.
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6. From time to time, the Plan should be reviewed and, when necessary, revised
without delay with due regard to the long-range outlook in both the domestic and
the international situation.
(Remarks)
1. Personnel programs will be promoted in order to improve the living conditions
of Self-Defense Force personnel an dl step up vocational training.
2. The total defense expenditure for the Fourth Five-Year Defense Plan (JFY
1972-76) is estimated at approximately 4,630 billion yen (15 billi-on i Alars).
However, the budgetary appropriations for each fiscal year will be determined
with due regard to the economic and financial situation prevailing at the
time and in proper balance with other general policies of the Government.
U i I -'~ (I.) rr I
NUA ~n I TO
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Major Items of Equipment to be Procured under the Fourth Defend Plan
as Compared to the Third Defense Plan
At the Time of Coin. At the Time of Com-
Major It: ms pletion of the Third pletion of the Fourth
Defense Plan Defer:ae Plan
Tanks 6 660 ?
820
Armored Personnel Carriers ? 650 *
650
VU-Propelled Guns ? 60 ?
140
Tactical Aircraft ? 310 *
350
(Helicopters) ? 21;0 ?
320
HAWK 5 Grc _rs
8 Groups
Maritime Self-Defense Force
Total Vessels * 210 *174,000 tons *
170 *214,000 tons
(Destroyers) * 48 * 97,000 tons *
54 ?121,000 tons
(Submarines) ? 15 * 21,000 tons *
15 * 27,000 tons
Tactical Aircraft * 170 *
200
(Anti-Submarine Aircraft) ? 160 ?
190
Air Se,f-Defense Force
Total Aircraft ? 880 *
770
(F-4EJ) is 80 ?
120
(RF-4E) -
14
(T-2) 4 *
60
(FS-T2 modified) *
60
(C-1) 4 *
30
NIKE (non-nuclear configuration) 4 Groups
6 Groups
* Approximate quantity
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N. Measures to Improve Civilian Control
1. The National Defense Council will include four additional members, i. e.,
the Minister for International Trade and Industry, the Director-General of
the Science and Technology Agency, the Chief Cabinet Secretary and the
Chairman of the National Public Safety Commission.
(Notes: The National Defense Council is currently composed of the Prime
Minister, the Deputy Prime Minister, the Minister for Foreign Affairs,
the Minister of Finance, the Director-General of the Defense Agency, and
the Director-General of the Economic Planning Agency with the Prime
Minister as its Chairman.)
2. The matter enumerated uelow shall be referred to the National Defense
Council fir approval as "important matters," as provided for in Article 62,
Paragraph 2, item 5, of the Defense Agency Establishment Law:
Changes in the structure and organization of units necessitating amendments
to the Sclf-Defec:se Force Law.
Changes in the authorized strength (uniformed officers and men).
Kinds and quantities of the following types of equipment, excluding those
already authorized under the long-term defense plans:
a) Tanks, major missiles and tactical aircraft of the Ground Self-Defense
Force.
b) Destroyers, submarines and tactical aircraft of the Maritime Self-
Defense Force.
WED
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C) Tactical aircraft and major missiles of the Air Self-Defense Force.
d) Any equipment not included in the three sub-paragraphs above,
which will require a long-term acquisition plan extending over
several years and also a large expenditure."