Summary: GAO summarized the contents of four reports concerning the defense burdensharing between Japan and the United States. The 1977 report noted that Japan had developed into an economic superpower, but that political, constitutional, and psychological constraints limited its ability to expand or use military power. The major cost sharing by Japan for U.S. forces in 1977 was the provision of land and facilities costing over $100 million yearly. Largely as a result of this report, Japan proposed a plan under which it paid some of the benefits received by Japanese nationals. In the 1978 report, GAO recommended that the United States urge Japan to eliminate excess payroll costs or pay the costs for U.S. forces; in 1979, Japan began paying some of these costs. A 1980 classified report noted that, in general, Japan was spending much less of its gross national product on defense than any other industrialized nation and, because of Japan's rapidly expanding economy, the Government had been able to increase defense spending while adhering to its 1-percent defense spending guideline. U.S. Defense officials had taken the two-pronged approach of urging improvements in Japan's defense forces and increasing the amount of host nation support provided to U.S. forces in Japan. Within terms of an agreement with the United States, Japan has increased its cost sharing for U.S. forces in recent years. A facilities improvement program is providing modern facilities for housing U.S. military personnel and, as a result, very little U.S. military construction money is used in Japan. However, U.S. officials generally agreed that opportunities exist for greater Japanese cost sharing. The most recent GAO report on defense issues in Japan was made in 1982; it noted the Department of Defense view that military coproduction agreements would provide opportunities to improve U.S. allies' military readiness and promote U.S. allies' standardization and operability of military equipment. Military coproduction, including the current coproduction of the F-15 Aircraft, contributes to the development of Japan's civil aircraft industry. GAO recommended that Federal agencies such as the Department of Commerce and the Department of Labor become involved in developing military coproduction policy.
