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Contents
 

I. Security Situation in the Asia-Pacific Region
1. Overview
2. Specific Regional Situations
(a) Korean Peninsula
(b) China
(c) Indonesia and East Timor
(d) India and Pakistan
(e) Afghanistan
 

II. Japan's Efforts for Securing Peace and Stability in Japan and the Region
1. Japan's Basic Security Policy
2. Japan-U.S. Security Arrangements
3. Maintaining an Appropriate Defense Capability
4. Efforts for Ensuring the Stability of the International Environment Surrounding Japan
(a) Dialogue, exchange, cooperation with the countries of the of the Asia- Pacific region
 (b) Promotion of arms control, disarmament and non-proliferation
 5. Progress of Japan's Security Policy
 (a) Countermeasures against terrorism
 (b) PKO
 (c) Emergency legislation
 

I. Security Situation in the Asia-Pacific Region
 

1. Overview
     There is a common recognition that the terrorist attacks of September 11,
2001 on the United States were also an attack on the entire international community. The reality of diversifying terrorist threats and the fact that international terrorism has become an urgent problem for all in the international community have been clearly etched in everyone's mind.
     Because of threats from terrorists, the importance of international coallition and cooperation for countermeasures against terrorism is widely recognized in the international community, and, in fact, cooperation for fighting against terrorism is progressing. The building and strengthening of international cooperative arrangements for preventing and eradicating terrorism is a forward- looking development for international relations. These arrangements have exerted a positive influence on relations among major countries in the Asia- Pacific region and produced a definite change in the region's security environment.
     On the other hand, many uncertain and unpredictable factors- remain unresolved in this region, such as the continuing outbreak of regional conflicts, the backgrounds to which are complex arid diverse and involve ethnic and religious tensions, and the proliferation of weapons of mass destruction and their means of delivery.
     To ensure regional peace and stability, Japan believes that countries in the region, while remaining in firm support of the presence and commitment of the United States in the region, must continue their efforts to promote confidence- building among the region's countries and advance bilateral and multilateral security dialogues, notably ARF, on a multi-tiered manner. Particularly in the efforts to deal with international terrorism, the sentiment in the statement issued by the ARF chairman after the September 11 attacks condemning terrorism and emphasizing the importance of international efforts to combat terrorism was very apt. Japan believes that in the future as well the countries of the region must move resolutely forward with their efforts to prevent terrorism, focusing their viable cooperation within the ARF framework.
 

2. Specific Regional Situations
 

(a) Korean Peninsula
     Compared to the year 2000, during which we witnessed the inter-Korean
Summit Meeting- and the reciprocal visits by high-levels of the United States and North Korea, 2001 did not produce such remarkable events in the international situations relating to North Korea. The Bush Administration of the United States, having finished the revision of its policy towards North Korea in June, called North Korea to reopen the bilateral talks. North Korea, however, refused to accept the U.S. initiative, maintaining that the proposed agenda items included North Korea's conventional weapon capability. Relations between South and North did not make substantial progress either. The inter- Korean Ministerial Talks, which resumed in September, have not been held since the sixth meeting in November 2001. With respect to relations between Japan and North Korea, although normalization talks were resumed in April 2000 and three meetings were held by October the same year, there was n<:> formal normalization talks in 2001.
      Regarding security issues, there have not been much progress in confidence building between South and North korea, nor have there been drastic changes in the situation where about 1.5 million military personnel are facing across the demilitarized zone, Also, various concerns that international community has with respect to North Korea still remain unresolve. These concerns include North Korea's missile capability as well we humanitarian issues. Japan expects North Korea to make constructive responses to these issues, and in bilateral talks with North Korea, Japan has been making utmost efforts for the resolution of these security and humanitarian issues.
 

(b) China

     Japan has been carefully watching the marked increases in China's military expenditures and the progress of the modernization of its military forces in recent years. In March 2002, China announced that it would increase its military budget for the same year by 25.2 billion yuan, a 17.6 percent increase over the previous year's expenditures, marking the fourteenth straight year of double digit increases in China's military spending. The total amount of China's 2002 military budget, however, was not made clear, and its claimed that there
is some opacity in China's military budgeting, as it appears- that China is expending funds for military purposes not included in the announced military budget. Japan has been calling for China to enhance the transparency of its military policy, including its military budget.
     Notwithstanding the incident involving the collision of U.s. and Chinese military aircraft in April 2001, U.S.-China relations are moving forward in an improved direction, prompted by both countries reaching agreement in negotiations with regard to China's accession to the WTO (June) and the decision by the United States to extend normal trade relations with China (July). The show of solidarity between both countries in taking countermeasures against terrorism after the September 11 attacks. accelerated their relation-building efforts and smoothed the way for the meeting between the U.S. and Chinese leaders occasioned by the APEC Summit Meeting in Shanghai in October and President Bush's visit to China in February 2002, both of which gave further impetus to the deepening of cooperative relations between both countries. Good U.S.-China relations are ofgreat importance for the peace and stability of the Asia-Pacific region, and Japan experts that relations between the U.S. and China will continue to develop in a favorable manner, with dialogue and cooperation between the U.S. and China progressing over a broad range of fields.
     Regarding relations between China and Taiwan, there are still no prospects for the resumption of dialogue, and it is necessary to watch carefully the long- term influence that the accession of both China and Taiwan to the WTO and other recent events will have on China-Taiwan relations in the future. Japan strongly hopes that the issue of Taiwan will be resolved peacefully through direct discussions between both sides, and Japan will continue to appeal for the prompt resumption of dialogue to this end.
 

(c) Indonesia and East Timor
     In Indonesia, the separatist and independence movement in Acheh and the clashes among residents in Maluku Province still continues. In Aceh, while the political situation is still unstable, a course has been set for dialogue to peacefully resolve the issues there, and in Maluku, definite progress has been.  In mediation efforts by the government for reconciliation and an end to the disturbances. The Stability of Indonesia is tremendously important for the peace and stability of the entire region. Japan supports the territorial integrity of Indonesia and recognizes the Importance of promoting the efforts by the Indonesian government to reach peaceful resolutions to these issues.
     East Timorese nation-building process is in process is in progress under the United Nations Transitional Administration in East Timor (UNTAET), is progressing towards May 20, 2002, when East Timor will declare itself independent. In addition to rehabilitation, development and assistance, Japan, under a request from the United Nations, has been dispatched 680 personnel of a Self Defense Force Engineer Unit and 10 UNTAET Headquarters staffs to UNTAET since March 2002. Japan, in cooperation with the international community, will continue to extend as much assistance as possible to East Timor to promote its sustainability.
 

(d) India and Pakistan
     The tension between India and Pakistan has remained high since the fighting in the Kargil district in Kashmir from May to June in 1999, in July 2001,  however, both sides did succeed in holding a summit meeting in the Indian city ; of Agra after a lapse of around two and a half years. Although no great progress was made in improving of relations between the two countries, they 1 agreed to continue a dialogue at the summit level. As the international community's fight against terrorism unfolded after September 2001, assaults took place on the Kashmir State Assembly ifl Sri nagar last October and on the Indian Parliament. Building last December. India reacted particularly strongly against the assault on the Indian Parliament building, the symbol particularly of India's democracy. Concluding that the strong measures against Kashmiri militants, and turn over 20 fugitives suspected of involvement in previous terrorist incidents in India. India also took various diplomatic measures, including recalling its ambassador to Pakistan. In addition, India made large- scale mobilization of its troops facing Pakistan., while, in response, the Pakistani military was put on a high-level of alert, thus resulting in the increase in militarily tensions between both sides. This highly tense situation continues until today.
     In response to the nuclear testing carried out by both India and Pakistan in May 1998, Japan took economic measures against both countries, including the freezing, in principle, of economic cooperation for new projects. As for progress being made by both countries in the areas of nuclear disarmament and non-proliferation, Japan's measures had obtained due results. Japan also recognised the genuine need, from the medium to long- term of point of view to support Pakistan, and to strengthen Japan's positive engagement with India. In view of the above points, in October 2001, Japan discontinuance the measures on India and Pakistan taken in may 1998. Even with the discontinuance of the measures, Japan still continues to call for both India and Pakistan to make further progress in nuclear non-proliferation issues.
 

(e) Afghanistan
      After the attacks on and bombing of the Taliban by the United States and others following September 11, the capture of Kabul by the Northern Alliance, and the subsequent routing of the Taliban, an Interim Administration was in Afghanistan through the conclusion of the Bonn Agreement in December. In January 2002, the full-fledged deployment of the International Security Assistance Force (ISAF) in Kabul was carried out, and ISAF members, together with local police, are patrolling the capital to maintain security there. It appears "- that the security situation in Kabul is to a certain degree stable. However, violent incidents are still occurring sporadically within Kabul, and close attention must continue to be paid to the security situation in the capital.
      On the other hand, with various military factions controlling other parts of the country, the nation-wide authority of the interim government is limited. In addition, as many warlords in Afghanistan are testing if they can secure and expand their power in anticipation of the convening of the Emergency" loya Jirga" there is a strongly held view that the security conditions in some regions are destabilizing. However, in parts of the country controlled by powerful military groups, the security situation appears stable. Yet there are disputes within the factions, and the situation is unpredictable. Furthermore, AI-Qaeda and Taliban forces remaining in many areas are still a dangerous presence, and the U.S. military and other forces are continuing their pursuit and mopping up of these remnants.
      The stability of Afghanistan is very crucial for eliminating the remaining hotbeds of terrorism. Japan will extend its maximum support for the rebuilding of Afghanistan, and in January 2002, Japan hosted the International Conference on Reconstruction Assistance to Afghanistan in Tokyo as one effort in this direction.
 

I.  Japan's Efforts for Securing Peace and Stability in Japan and the Region
 

1. Japan's Basic Security Policy
    Given the security in the Asia-Pacific region described above, Japan's security policy consists of three main pillars: 1) firmly maintaining the Japan- U.S. Security Arrangements, 2) moderately building up Japan's defense capability on an appropriate scale, 3) pursuing efforts to ensure the stability of the international environment surrounding Japan. The following is a summary of these three pillars, in particular relating to events in 2001.
 

2. Japan-U.S. Security Arrangements

    The Japan-U.S. Security Arrangements are indispensable for the peace and security of the region, and have essential importance for the peace and stability of the region as the most important pillar ensuring a U.S. military presence in the Asia-Pacific region. In this sense, the Japan-U.S. Security Arrangements can be said to be fulfilling their role as a "public good" in the region.
    At the Japan-U.S. Summit Meeting in June 2001, welcoming the 50th year of Japan-U.S. security relationship, the President and Prime Minister reaffirmed that the Japan-U.S. alliance is the cornerstone of peace and stability in the Asia-Pacific region. It is essential for both countries to continue their unflagging efforts to strengthen credibility in the Japan-U.S. Security Arrangements, and as part of those efforts, ensuring the effectiveness of the new Guidelines for Japan-U.S. Defense Cooperation (Guidelines) is vital. The aim of the Guideline is to create a solid basis for more effective and credible Japan-U.S. cooperation under normal circumstances and during contingencies. In the future as well, Japan will continue its effort for ensuring the effective application of the Guidelines. As well as working to enhance cooperation under normal circumstances, Japan will continue to conduct bilateral planning of bilateral actions in case of an armed attack against Japan and Japan-U.S. cooperation in situations in areas surrounding Japan.
 

3. Maintaining an Appropriate Defense Capability
     Japan has been making efforts on its own initiative to build a moderate defense capability in accordance with the fundamental principle under the Constitution of not becoming a military power that could pose a threat to other countries. Under this policy, Japan formulated the National Defense program Outline (NDPO), which defines the appropriate nature of Japan's defense capability and prescribes specific preparedness targets. Japan has been seeking to develop its defense capability in accordance with the NDPO.
     The NDPO, which was formulated in 1995, provides a framework for Japan to build up a defense capability able to both to respond effectively to various situations and. at the same time, to ensure appropriate flexibility so that Japan can respond smoothly to changes in circumstances. This being done with efforts- to make Japan's defense capability more rational, efficient, and compact, enhance necessary functions, and improve quality.
     In accordance with the approach laid down in the NDPO, Japan's Medium Term Defense Program (for the period from FY2001 to FY2005), which was formulated in 2000, aims to cope with the rapid advance and dissemination of information and communications technology, to improve capabilities for responding to attacks by guerilla groups or special forces, or attacks by nuclear, biological, or chemical weapons, and to enhance and improve disaster relief dispatch team capabilities.
     In addition, the cooperative research with the United States on ballistic missile defense (BMD) technologies that was decided to begin in December 1998 constitutes technical research into purely defensive systems for the protection of the lives and property of Japanese citizens. No decision has been made on moving forward with this research to the developmental and then to the deployment stages. Japan intends to continue this cooperative research in the future, while maintaining appropriate transparency in the process.
 

4. Efforts for Ensuring the Stability of the International Environment Surrounding Japan
      Toe peace and stability of Japan are closely intertwined with the peace and stability of the Asia-Pacific region and in turn of the world as a whole. With this understanding, Japan is making concerted efforts in these areas: 1) dialogue, exchange, and cooperation with the countries in the Asia-Pacific region, and 2) the promotion of arms control, disarmament, and non-proliferation.
 

(a) Dialogue, exchange, cooperation with the countries of the Asia-Pacific region
       In addition to cooperation among the countries concerned in response to specific problems, efforts to promote relations of trust through dialogue, exchanges, and cooperation among the countries of the region are essential for the peace and stability of the richly diverse Asia-Pacific region.

     Japan is making positive efforts to promote bilateral dialogue and excha_nge on security issues as well as dialogue and cooperation at multilateral forums such as the ARF. With regard to summit diplomacy, Japan is making active efforts to hold bilateral summit meetings with other countries in the region and energetically engages in multilateral dialogue and cooperation, such as at the Asia-Pacific Economic Cooperation (APEC) venues, Japan-ASEAN Summit Meetings, and ASEAN+3 Summit Meetings.
     The ARF and other forums such as the ASEAN+3, ASEAN post-Ministerial Conferences, and the Asia-Pacific Meetings (ASEM) offer arenas for discussion on the political and security issues in the Asia-Pacific region. Japan welcomes the development offrank exchanges ofviews on political and security dialogue in the region is advanced centered on the ARF, which is a region-wide forum enjoying the participation ofall the major countries ofthe region and has been a forum for promoting concrete dialogue and cooperation on vital issue, including confidence building measures. In the future as well, Japan will continue to cooperate with other participating countries to advance the ARF
process.
 

(b) Promotion ofarms control, disarmament, and non-proliferation
      In the Asia-Pacific region as well, the proliferation ofweapons ofmass destruction and their delivery means continues to pose a grave threat to the security of the region. Under these circumstances, Japan is undertaking a range of active efforts in the field ofarms control, disarmament, and non- proliferation. Furthermore, Japan is seeking to further enhance its cooperation with other Asian countries, which have an increasingly significant responsibility in this area.
      Japan attaches great importance to taking progressive and practical measures aimed at realizing, as early as possible, a world free of weapons of mass destruction, particularly nuclear weapons. At the United Nations General Assembly in the autumn of 2001, Japan submitted a draft resolution entitled" A path to the total elimination of nuclear weapons," and this resolution was adopted by an overwhelming majority of the Member States. The resolution called for, among other steps, the early entry into force of the CTBT and the immediate commencement and the early conclusion of negotiations on the Fissile Material Cut-off treaty (FMCT); Japan intends to strengthen its diplomatic efforts for the implementation of such realistic measures to eliminate nuclear weapons. As a part of these efforts, Japan hosted in Tokyo a seminar on strengthening IAEA Safeguards through promotion of the conclusion of IAEA Additional Protocols in June 2001.
      With regard to the issues of conventional weapons, Japan is also making comprehensive efforts. Concerning landmines, Japan is taking a two- pronged approach: working for the realization of a universal and effective ban on land mines with the aim of permitting "zero" landmine victims and strengthening its assistance for demining operations and helping landmine victims. Regarding small arms, a Programme of Action was adopted at the U.N. Conference on the Illicit Trade in Small Arms and Light Weapons in All Its Aspects held in July 2001, and Japan hosted the Tokyo Follow-up Meeting of the UN Conference on the Illicit Trade in Small Arms and Light Weapons in All Its Aspects in January 2001, participating positively in discussions on the implementation of the Programme of Action.
      In regard to the strengthening of non-proliferation mechanism in Asia, Japan has been intensifying its efforts through cooperating for the improvement of export control systems and pursuing dialogues on the issue of missile proliferation with Asian countries. As a part of these efforts in March 2002, Japan held the Tokyo Seminar on Missile Non-Proliferation inviting government officials of the ASEAN countries responsible for the non-proliferation policies.
 

5. Progress of Japan's Security Policy
        In recent years Japan has been making the following security-related efforts, in the background of which have been the emergence of new issues in the area of security and the increasing expectations on Japan by the international community.

(a) Countermeasures against terrorism
     The terrorist attacks in the United States last year made the world aware of new grave threat to security. Recognizing that fight against terrorism is also a problem that Japan itself must be fully engaged in, Japan has been making active efforts, in collaboration with the international community, for the prevention and eradication of terrorism. Under this recognition, Japan enacted its Anti-Terrorism Special Measures Law, which allows Japan's Self Defense Forces to provide fuel and supplies and their transport for operations by the U.S. and other military as cooperation and support activities and to carry out related search and rescue operations, as well as to engage in relief operations for refugees and displace persons. Japan's Self Defense Forces are now carrying out these cooperation and support operations for the U.S. and UK military and relief work of war victims. In the future, Japan will continue to be actively engaged in international efforts against terrorism in a range of areas, including the development of measures against the financing of terrorism, the improvement of immigration control, and the prevention of hijackings through the implementation of relevant U.N. Security Council resolutions, the conclusion anq implementation of the U.N. conventions on country terrorism, etc.
 

(b) PKO
     Regarding peacekeeping operations, Japan revised its International Peace Cooperation Law in December 2001 in order to contribute more appropriately and effectively to peacekeeping efforts undertaken primarily by the united Nations. In addition, since March 2002, Japan has dispatched 680 personnel of a Self Defense Force Engineer Unit and 10 Headquarters staffs to UNTAET. This dispatch was based on a request from the United Nations and the East Timor leadership for Japanese cooperation.
 

(c) Emergency legislation

     It is a duty of the state to prepare necessary arrangements to ensure the independence, sovereignty of Japan, and to ensure security of the Japanese citizens under the Japanese constitution. Currently, relevant bills regarding emergency legislation are being examined in the Japanese Diet, and more necessary arrangements will be examined in the future. Emergency legislation is strictly for the preparation against armed attacks on Japan to ensure the security of Japanese citizens; any such legislation will adhere strictly to international humanitarian law. In addition, the emergency legislation will contribute to raising the confidence of the Japan-U.S. Security Arrangements by expediting support for U.S. military operations.
In this way, the emergency legislation will lead to enhancing the transparency of Japan's security policies and the predictability of Japan's actions in case of emergency situations.
           Japan will continue to play an active role, in close collaboration with the other countries of the region, for dealing with various issues in order to ensure the peace and stability of the Asia-Pacific region. At the same time, Japan will make efforts to ensure the transparency for other countries of Japan's security policies.

 
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