SUMMARY OF MID-TERM DEFENSE PROGRAM (FY2011-FY2015)

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(Provisional Translation) SUMMARY OF MIDTERM DEFENSE PROGRAM (FY2011FY2015) Approved by the Security Council and the Cabinet on December 17, 2010 I. Program Guidance II. Revision of Organization/Force Disposition of the SelfDefense Forces (SDF) III. Major Programs Regarding SDF s Capabilities IV. Measures for Strengthening the JapanU.S. Security Arrangements V. Quantities of Major Procurement VI. Expenditures I. Program Guidance FY201115 defense buildup will be carried out, in accordance with the National Defense Program Guidelines (NDPG), to build Dynamic Defense Force with the following as guidance. (1) The NDPG identifies three roles that Japan s defense should fulfill: to effectively deter and respond to contingencies; to further stabilize the security environment of the AsiaPacific, and; to improve global security environment. To be able to engage swiftly and seamlessly in activities to fulfill these roles, emphasis will be given to, among others, enhanced jointness, enhanced operational capability in remote islands, and enhanced capacity for international peace cooperation activities. (2) Resource allocation priority will be given to those functions that are: versatility; asymmetric response, and; irreplaceability. To hedge against fullscale invasions, relevant posture including knowledge and expertise will be maintained at a minimum necessary level.

(3) In order to efficiently build a quality defense force, combine the introduction of highly capable equipment and servicelife extension and upgrading of existing equipment. (4) Conduct thorough revision of existing personnel management regimes to check and economize personnel expenses, and shift towards a younger SDF age distribution for better robustness of the force. Further promote acquisition reforms thereby providing for increased density and volume of operations. (5) The JapanU.S. Alliance remains vital to the peace and security of Japan. The presence of the United States armed forces in Japan under the Treaty is essential to maintain peace and stability of the region. Japan will enhance bilateral consultations and other cooperation to deepen and develop the Alliance to adapt to the evolving security environment, while actively taking measures for the smooth and effective stationing of the United States armed forces in Japan. (6) In view of increasingly tighter fiscal conditions, seek further economization and rationalization and check expenditures. Conduct bold revision of resource allocation for three services and make focused investments in critically necessary functions, thereby bringing about structural reform of the defense force. II. Revision of SDF Organization/Force Disposition (1) Ground SelfDefense Force (GSDF) Reduction in tanks, howitzers and rockets Increased mobility: reorganization of operational units Stationing of units in island areas of southwestern Japan (2) Maritime SelfDefense Force (MSDF) Regionallydeployed destroyer units will become mobile units Measures for expanding submarine fleet (3) Air SelfDefense Force (ASDF) Shift one fighter squadron to Naha Air base as its second squadron New ASDF Yokota base (Air Defense Command will move to Yokota) (4) Authorized Number of SDF personnel at the End of FY2015 Regular personnel: approx. 246,000 (approx. 2,000 decrease from endoffy2010 strength)

GSDF: approx. 157,000 (activeduty: approx. 150,000, readyreserve: approx. 7,000) MSDF & ASDF: equivalent to endoffy2010 strength III. Major Programs Regarding SDF s Capabilities 1. Effective Deterrence and Response Ensure information superiority through continuous steadystate intelligence, surveillance and reconnaissance (ISR) activities in order to keep track of military trends and activities around Japan and gain early warning of various symptoms. Swiftly and seamlessly deal with various contingencies as they develop. Ensuring security of sea and air space around Japan A destroyer equipped with helicopters (DDH), destroyers (DD), submarines (SS), and P1 maritime patrol aircraft Servicelife extension for DD, SS, and P3C maritime patrol aircraft Fixed 3D radar system Upgrade of E767 airborne warning and control system (AWACS) Countering attack against island areas < ISR capabilities > Deployment of GSDF surveillance units to the island areas of southwestern Japan Generation of new units for initial response to contingencies in that area Deployment of mobile groundbased surveillance radar to islands in southwestern Japan to reinforce seamless ISR posture Development of maintenance infrastructure for E2C earlywarning aircraft in southwestern Japan for continuous steadystate operation < Improvements in rapid deployment and response capabilities > CH47JA, followon transportation aircraft to C1*, DDH (*Tentatively named C2 ) Groundbased antiship missiles Rapid deployment exercises < Improvements in air defense capability >

Second fighter squadron to Naha Air base Followon fighter to F4 Modernization of F15 and F2 Improvement of capability of Patriot surfaceto air guided missile (SAM) Mediumrange SAM Followon rescue helicopter to UH60J Modification of C130H (aerial refueling for rescue helicopters) < Security of sealanes> Programs for security of sea and space around Japan SH60K patrol helicopters, MCH101 minesweeping/transportation helicopters Servicelife extension of SH60J patrol helicopters US2 flying boat Streamline search & rescue posture Countering Cyber Attacks Improvements in joint network protection More robust studies, exercises, and education for improved cyber security capabilities Countering Special Operation Forces Attacks/Guerilla Warfare LAV (Light Armored Vehicle), UH60JA multipurpose helicopters, AH64D attack helicopters Nuclear, biological and chemical reconnaissance vehicles Countering Ballistic Missile Attacks Upgrade of Aegis and Patriot missile systems JapanUS joint development of ballistic missile defense (BMD) interceptors Response to Complex Contingencies Improved command & control and logistic support to deal with sequential or simultaneous occurrence of multiple contingencies Response to LargeScale and Special Disasters Planning, training, coordination with related organizations, etc.

2. Further Stabilization of Security Environment of the AsiaPacific Sustained steadystate ISR activities and timely, tailored training & exercises; Development of layered bilateral and multilateral security dialogues, defense cooperation and exchange, and multinational training/exercise to promote regional security architecture. Promotion of capacitybuilding in nontraditional security areas by leveraging SDF capabilities such as military medicine and explosive ordnance disposal. 3. Improvement of Global Security Environment Actively engage in international peace cooperation activities Review the modality of Japan s participation in United Nations peacekeeping to include the Five Principles Promote capacitybuilding, counterterrorism measures, maritime security, and maintenance of maritime order Study impacts of climate change and resource gaps on security and operational environments 4. Focus Areas for Capability Development Joint Operations Integrated and effective response by three services in countering attacks against island areas, security of air and maritime spaces, and complex contingencies International Peace Cooperation Activities Strengthen posture and function of the GSDF Central Readiness Force Improvement of transportation capability; DDH, followon transportation aircraft to C1, modification of existing equipment for international peace cooperation activities Intelligence Study on a comprehensive ISR posture Improvement of information gathering systems Quality intelligence experts

Science & Technology Improvement of command and control system Research and Development (modification of SS; followon multipurpose helicopter; and etc.) Medical Integration of SDF hospitals Improvement of medical support for overseas operations Quality medical experts 5. Infrastructure for Defense Force Human resources Improvement of training infrastructure Reform of the National Defense Academy Reform of personnel management system Reviewing age and rank distributions New personnel appoint system for logistic support function Streamlining logistics including business in camps and bases Maintenance and development of infrastructure of defense industry and technology (making strategy on infrastructure of defense industry and technology, etc.) Exploring measures to deal with changes in international environment surrounding military equipment Acquisition reform (improving contract system, etc.) Improvement of operational infrastructure for equipment (Secure fuel and parts for operations, introducing new contract system, etc.) Cooperation with local communities and related organizations IV. Measures for Strengthening JapanU.S. Security Arrangements 1. Strategic Dialogues and Policy Coordination Work on security environment assessment, common strategic objectives and

Roles, Missions & Capabilities (RMC) 2. Strengthening JapanU.S. Defense Cooperation (1) Further enhancement of cooperation in key areas Strengthen existing cooperation such as intelligence cooperation, bilateral contingency planning, response to situation in areas surrounding Japan, ballistic missile defense and equipment and technology cooperation. Also conduct bilateral consultations to improve credibility of extended deterrence as well as information security. Study measures for promoting bilateral cooperation to enhance U.S. forces deterrent and response capability to regional contingencies. (2) Deepening JapanU.S. defense cooperation Bilateral cooperation on ISR; broadening trilateral and multilateral training in addition to Japan and the U.S.; and consultation on expansion of the shared use of facilities by U.S. forces and the SDF, which would contribute to closer cooperation in normal circumstances, as well as regional and global JapanUS cooperation in the areas such as international peace cooperation activities, international disaster relief operations and counterpiracy effort Consultation and cooperation on global issues including space, cyberspace, maritime security, and climate change, while coordinating with relevant ministries and agencies 3. Measures for smooth and effective station of US Forces in Japan Ensure stable Host Nation Support (HNS) expenditures while further promoting efficiency and transparency V. Quantities of Major Procurement See Annex Table. VI. Expenditures 1. Ceiling on total expenditures for FY20112015: approx. 23,490 billion. 2. Annual defense budgets will be allocated under a fiveyear total of approx. 23,390 billion. 3. Fund for unexpected situations: 100 bn. (subject to Security Council approval)

4. This program will be reviewed in FY 2013 and revised as necessary, taking into consideration international security environment, technological trends including information communication technology, and fiscal conditions. Total expenditure of the revised program would not exceed the aforementioned ceiling of 23,490 billion.

Annex Table Service Equipment Quantity Ground SelfDefense Force Tanks Howitzers and rockets (except mortar) Armored Vehicles Groundbased antiship missile launchers Attack helicopters (AH64D) Transportation helicopters (CH47JA) Middlerange SAM batteries 68 32 75 18 3 5 4 Maritime SelfDefence Force Modification of Aegisequipped destroyers Destroyers Submarines Other ships Total new ships (Tonnage) Fixedwing patrol aircraft Patrol helicopters Minesweeping/transportation helicopters 2 3 5 5 13 51,000t 10 26 5 Air SelfDefense Force Improvement of capability of Patriot SAM batteries Modernization of F15 New fighters New transportation aircraft 1 16 12 10