Japan said on Friday it would develop a missile defence system jointly with the US, marking a significant shift in the country's defence policy, government officials and diplomats said.
Nearly Y100bn ($930m) will be allocated in next year's budget for procuring, upgrading and developing new technology to create a ballistic missile defence (BMD) system - a more than a 50-fold increase on the token sum allotted this year. The first phase of the system is due to be completed by 2007.
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Japan's decision to develop a missile shield, as first reported in the Financial Times, has gathered political momentum this year as tensions have grown over North Korea's nuclear programme.
Developing such a system, which raises complex constitutional and legal issues, could spark heated objections from some of Japan's neighbours. China has already expressed concern abou t Japan's intention to send troops to Iraq.
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