Ease curbs on joint development of defense tech
A recent welcome development will help deepen Japan-U.S. defense cooperation and strengthen the bilateral alliance.
Defense Minister Toshimi Kitazawa, in talks with U.S. Defense Secretary Robert Gates in Singapore on Friday, articulated the criteria under which Japan will allow the United States to export to third countries a jointly developed next-generation ballistic missile interception system.
The Japanese defense chief told his U.S. counterpart Japan will approve third-country exports if:
-- The third countries to which the United States exports the missile interceptors, the sea-based Standard Missile-3, are in principle limited to U.S. allies.
-- A "strict export control" is in place to prevent the interceptors from being transferred from the third countries to other countries.
The issue of transferring the SM-3 system has been pending since the Japan-U.S. joint development program for missile defense systems was launched in 2006. The two countries are scheduled to begin joint production of the SM-3 interceptors around 2014 and start deployment in 2018. The transfer issue must be settled in time for this schedule.
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Ease arms export principles
To cope with threats of ballistic missile attacks, it is imperative for Japan and the United States to closely cooperate in the operations of their missile defense teams, the exchange of information and the technological aspects of the missile defense system. The joint development of the next-generation interceptor missiles is emblematic of the nations' cooperation.
Japan has been lagging in international cooperation in defense technologies because of constraints imposed by its three longstanding principles on arms exports.
In the ongoing joint Japan-U.S. development of the SM-3, which has been considered an exception to the arms embargo principles, Japan's technological capability has been highly praised. Such Japan-U.S. cooperation should be expanded.
The administration of Prime Minister Naoto Kan, when it revised the National Defense Program Guidelines toward the end of 2010, failed to ease the three arms export principles, mainly in consideration of the Social Democratic Party, which opposes any change in the principles. On that occasion, however, the Kan government did take note of its plan to study the advisability of Japan's participation in international arms development projects with other countries than the United States.
From the viewpoint of maintaining the technological base of Japan's defense industries, too, the three-point principles banning arms exports should be eased as soon as possible.
In the latest Japan-U.S. defense ministerial meeting, the two sides also discussed ways to secure a site for U.S. carrier-borne aircraft to hold takeoff and landing practice to replace Iwoto, a Pacific island under Tokyo's jurisdiction.
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New practice site crucial
Securing a new site for the landing practices is integral to realizing a plan to transfer carrier-borne aircraft of the U.S. Navy from the U.S. Atsugi base in Kanagawa Prefecture to Iwakuni base in Yamaguchi Prefecture.
The Defense Ministry has chosen Mageshima island in Nishinoomote, Kagoshima Prefecture, located west of Tanegashima island in the prefecture, as a candidate site for the takeoff and landing practice and has begun consulting with local communities there. This is an important step toward advancing the planned transfer of U.S. carrier-borne aircraft to Iwakuni, a major pillar of realignment of U.S. forces in Japan.
Finding a new practice site for the U.S. forces is always hard because it involves the difficult task of obtaining the agreement of local communities.
Finding a replacement site for Iwoto island has been difficult, too, and is behind schedule. The relocation plan should be realized as quickly as possible.
The Kan Cabinet has regrettably put off a number of issues related to the realignment of U.S. forces in Japan, including the relocation of some functions of the U.S. Marine Corps' Futenma Air Station in Okinawa Prefecture.
Without steadily implementing Japan-U.S. defense accords one by one, there can be no prospect for enhancing the mutual trust of the bilateral alliance.
Progress made toward integrated reforms
The joint government and ruling party panel established to discuss social security reform and chaired by Prime Minister Naoto Kan has compiled a reform plan.
The plan should be used as a basis for discussions between the ruling and opposition parties over raising the consumption tax rate.
With the government's fiscal deficit ballooning, resources must urgently be secured to fund welfare measures in this age of a graying society with an extremely low birthrate.
The reform plan proposed using consumption tax revenue exclusively for social security purposes, and stated that the consumption tax rate should be raised to 10 percent in two stages by fiscal 2015. The reform plan is significant in that it presented a timetable for increasing the consumption tax rate by five percentage points.
Why is a 10 percent consumption tax rate needed? The panel explained as follows.
About 3.8 trillion yen is needed to enhance systems for child-rearing assistance, health and nursing care, and pensions. Nearly 1.2 trillion yen will be saved by holding down benefits for health care and welfare services, leaving a shortfall of about 2.7 trillion yen.
The panel concluded that an increase of five percentage points also is necessary to secure tax money to pay basic pensions.
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LDP ahead of pack
The Liberal Democratic Party called for a 10 percent consumption tax rate before other parties, in its pledges for the House of Councillors election last year. With the reform plan now unveiled, the Democratic Party of Japan and the LDP agree on funding of the social security system.
Both parties also recognize that an even higher consumption tax rate will be unavoidable in the mid- and long-term, and that the social security budget will have to become an independent account.
Concerning reform of the pension system, the panel's plan virtually shelved the establishment of an income-linked pension program, something the DPJ has been promoting, and instead put priority on fine-tuning the existing pension system, which the LDP and New Komeito have called for.
The ruling and opposition parties thus appear to be reaching a broad agreement on the foundation for discussions on social security reform.
However, the reform plan leaves untouched items related to the DPJ's manifesto for the 2009 House of Representatives election, including keeping the child-rearing allowance intact.
The reform plan generously incorporates measures to help low-income earners, but the DPJ is divided over how to eliminate waste to make the social security system more efficient.
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More talks needed
The government and ruling parties should have more talks to pave the way for concrete discussions between the ruling and opposition parties. The ruling parties may need to make concessions to the opposition parties.
We may not be able to expect such leadership from Kan, who is losing his political clout. However, integrated reform of the tax and social security systems is not a task that any administration can shy away from.
The ruling and opposition parties should bring about social security reform through policy coordination, so everyone can have peace of mind.
To this end, we need a "post-Kan" administration, which will make it possible for the ruling and opposition parties to cooperate in tackling the issue.
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