Three Principles on Transfer of Defense Equipment and Technology
The Government has made it its basic policy to deal with overseas transfer of defense
equipment and technology in a careful manner in accordance with Prime Minster Eisaku
Sato’s remarks at the Diet in 1967 (hereinafter referred to as “the Three Principles on ArmsExports”) and the collateral policy guideline by the Miki administration in 1976. These policy
guidelines have played a certain role as Japan has been following the path of a peace-lovingnation. On the other hand, these policy guidelines including the non-permission of arms
exports to communist bloc countries have increasingly proved unsuitable for the current
situation. Also, the Government has repeatedly taken exemption measures depending on theindividual necessity of each case since arms exports to substantially all areas were notpermitted, as a result of not promoting arms exports regardless of the destinations,.
Japan has consistently followed the path of a peace-loving nation since the end of World War
II. Japan has adhered to a basic policy of maintaining an exclusively national defense-oriented
policy, not becoming a military power that poses a threat to other countries, and observing theThree Non-Nuclear Principles. At the same time, surrounded by an increasingly severe
security environment and confronted by complex and grave national security challenges, it
has become essential for Japan to make more proactive efforts in line with the principle ofinternational cooperation. Japan cannot secure its own peace and security by itself, and theinternational community expects Japan to play a more proactive role for peace and stability inthe world commensurate with its national capabilities. Against this backdrop, under theevolving security environment, Japan will continue to adhere to the course that it has taken todate as a peace-loving nation, and as a major player in world politics and the world economy,
contribute even more proactively in securing peace, stability and prosperity of theinternational community, while achieving its own security as well as peace and stability in the
Asia-Pacific region, as a “Proactive Contributor to Peace” based on the principle ofinternational cooperation.
From the view point of achieving the fundamental principle of national security byimplementing concrete policies, the Government, in accordance with the National Security
Strategy adopted on December 17, 2013, decided to review the Government’s existing policy
guidelines on overseas transfer of defense equipment and technology, and set out clear
principles which fit the new security environment while giving due consideration to the roles
that the existing policy guidelines have played so far and by consolidating the policy
guidelines comprehensively with consideration on the past exemption measures.
An appropriate overseas transfer of defense equipment and technology contributes to further
active promotion of the maintenance of international peace and security through timely andeffective implementation of contribution to peace and international cooperation such as
international peace cooperation, international disaster relief, humanitarian assistance,
responses to international terrorism and piracy, and capacity building of developing countries(hereinafter referred to as “peace contribution and international cooperation”). Such transfer
also contributes to strengthening security and defense cooperation with Japan’s ally, theUnited States as well as other countries. Furthermore, it contributes to maintaining andenhancing Japan’s defense production and technological bases, thereby contributing to Japan’senhancement of defense capability, given that international joint development and production
projects have become the international mainstream in order to improve the performance ofdefense equipment and to deal with their rising costs.

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On the other hand, since the distribution of defense equipment and technology has significant
security, social, economic and humanitarian impact on the international community, the needfor each government to control the transfer of defense equipment and technology in a
responsible manner while taking various factors into account is recognized.
In light of the above, while maintaining its basic philosophy as a peace-loving nation that
conforms to the Charter of the United Nations and the course it has taken as a peace-loving
nation, Japan will control the overseas transfer of defense equipment and technology based on
the following three principles. The overseas transfer of facilities related to arms production
will continue to be treated in the same manner as defense equipment and technology.
1.

Clarification of cases where transfers are prohibited
Overseas transfer of defense equipment and technology will not be permitted when:1) the transfer violates obligations under treaties and other international agreements thatJapan has concluded,2) the transfer violates obligations under United Nations Security Council resolutions,or3) the defense equipment and technology is destined for a country party to a conflict (acountry against which the United Nations Security Council is taking measures tomaintain or restore international peace and security in the event of an armed attack).

2.

Limitation to cases where transfers may be permitted as well as strict examination andinformation disclosure
In cases not within 1. above, cases where transfers may be permitted will be limited to thefollowing cases. Those cases will be examined strictly while ensuring transparency. Morespecifically, overseas transfer of defense equipment and technology may be permitted insuch cases as the transfer contributes
to active promotion of peace contribution and international cooperation, or
to Japan’s security from the viewpoint of- implementing international joint development and production projects with countries
cooperating with Japan in security area including its ally, the U.S. (hereinafterreferred to as “the ally and partners”),- enhancing security and defense cooperation with the ally and partners, as well as- supporting the activities of the Self-Defense Forces including the maintenance of its
equipment and ensuring the safety of Japanese nationals.
The Government will conduct strict examination on the appropriateness of the destinationand end user, and the extent the overseas transfer of such equipment and technology willraise concern for Japan’s security. Then the Government will make a comprehensive
judgment in light of the existing guidelines of the international export control regime andbased on the information available at the time of export examinations.
Significant cases that require especially careful consideration from the viewpoint ofJapan’s security will be examined at the National Security Council (NSC). As for thecases that were deliberated at the NSC, the Government will disclose their information inaccordance with the Act on Access to Information Held by Administrative Organs (LawNo. 42 of 1999).

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3.

Ensuring appropriate control regarding extra-purpose use or transfer to third parties
In cases satisfying 2. above, overseas transfer of defense equipment and technology will
be permitted only in cases where appropriate control is ensured. More concretely, theGovernment will in principle oblige the Government of the recipient country to gain itsprior consent regarding extra-purpose use and transfer to third parties. However,appropriate control may be ensured with the confirmation of control system at thedestination in such cases as those where the transfer is judged to be appropriate for active
promotion of peace contribution and international cooperation, when the transfer involves
participation in an international system for sharing parts etc., and when the transfer
involves delivery of parts etc. to a licenser.

Implementation guidelines for the policy described above will be decided by the NSC. The
Minister of Economy, Trade and Industry will implement the Foreign Exchange and Foreign
Trade Act (Law No.228 of 1949) appropriately in accordance with the decision.
For the purpose of this policy, “defense equipment and technology” refers to “arms andmilitary technologies”; “arms” refers to items listed in Section 1, Annexed List 1 of theExport Trade Control Order (Cabinet Order No. 378 of 1949), and are to be used by militaryforces and directly employed in combat; and “military technologies” refers to technologies forthe design, production or use of arms.
The Government will contribute actively to the peace and stability of the international
community as a “Proactive Contributor to Peace” based on the principle of international
cooperation. Under such policy, it will play a proactive role in the area of controlling defense
equipment and technology as well as sensitive dual-use goods and technologies to achieve theearly entry into force of the Arms Trade Treaty and further strengthen the international export
control regimes.

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