Japan May Exceed Cap on Defense Outlay

Japan’s defense spending next year may exceed a politically sensitive cap as the country beefs up its military strength to face a Soviet buildup in the Pacific, a government policy paper released Friday said.

The annual “white paper” released by the Defense Agency said Japan’s defense capability has not reached its “necessary peacetime level” in the face of a continuing Soviet military expansion in the Far East.

“The international military situation in the region surrounding Japan has increased in harshness,” the white paper said.

‘Urgent Task’

“Consequently, the government takes the view that it is an urgent task to attain this force level as soon as possible, and intends to step up the defense buildup.”

The report said the Japanese are alarmed by the Soviet buildup in intermediate-range nuclear forces within striking distance of Japan.

There are now more than 162 SS-20 missiles and 85 TU-22 Backfire bombers deployed in Asia. There were none 10 years ago.

To effect its own buildup, Japan may be forced in fiscal 1987 to spend more than its self-imposed limit of 1% of gross national product, the report said. GNP may show little growth this year because of an economic slowdown.

Cap Imposed in 1976

The cap was imposed by the ruling Liberal Democratic Party in 1976 as concern grew about rising military expenditures. Japan’s postwar constitution allows a military only to defend its home islands, and a departure from the ceiling could detonate a political mine field.

“If the ratio is simply calculated on the basis of governmental estimate (the initially estimated GNP for fiscal 1985 and the real growth rate of 4% of GNP for the concurrent period), it would slightly exceed the 1% of GNP,” the document said.

Under the North Atlantic Treaty Organization’s accounting methods, which include military pensions now tallied in Japan as welfare expenses, the Japanese already spend nearly 1.5% on defense.

The report’s authors said the government would “make efforts to respect” the 1% ceiling in next year’s defense budget.

Reviewed Annually

The government approved a five-year, $118.7-billion defense program last September, but reviews its year-to-year defense outlays annually.

Japan’s defense budget for fiscal 1986, ending next March 31, is $21.3 billion, or 0.9937% of GNP.

Another controversial issue, Japanese participation in research on the U.S.-proposed Strategic Defense Initiative, received only fleeting mention in the white paper.

It did not indicate how the Japanese would rule on participation in the space-based missile shield project, popularly known as “Star Wars.”

Prime Minister Yasuhiro Nakasone, whose Cabinet endorsed the defense white paper, has previously favored a Japanese role in the project, but he was noncommittal Friday.

“Studies and research are being conducted, but we have not arrived at a conclusion,” Nakasone told reporters.